Similarities & Differences Between / Among Trial Balance And Profit And Loss Account And Balance Sheet With Relationship
A Trial Balance shows the finalized closing balances of Different Types of Accounts before Adjustments , after Adjusting Entries and Closing Entries are recorded while the Profit and Loss Account or Income Statement shows the lists of Revenues And Expenses in order to match these Temporary Accounts to find out the N et Income / N et Profit or financial performance of the business for the accounting period. A B alance Sheet shows the financial position of Permanent Accounts’s balances (Assets, Liabilities & Equity) on a particular time. Trial balance is the based for the preparation of Financial Statements while Profit And Loss Account provides N et Income or N et Loss to be added or deducted from Capital or Equity on balance sheet while balance sheet shows the financial position of the business due to the initial operations or activities & performance performed by the management of the company to operate the business successfu...