What is a Balance Sheet?

Balance Sheet in Tally Prime

What is a Balance Sheet?

A Balance Sheet is a financial statement that shows the financial position of a business at a specific date. It displays the Assets and Liabilities, ensuring that the accounting equation is balanced:

Assets = Liabilities + Capital

Key Points:

1. Automatic Generation: Tally Prime automatically generates the Balance Sheet using ledger entries.
2. Two Main Sections:
3. Liabilities: Includes Capital, Loans, Creditors, etc.
4. Assets: Includes Fixed Assets, Bank Accounts, Debtors, etc.
5. Date-Specific: It shows the status as on a particular date (e.g., March 31).
6. Real-Time Update: Any change in ledger entries instantly reflects in the Balance Sheet.
7. Drill-Down Feature: You can press Enter to drill down into individual components for detailed analysis.
8. Comparison: You can compare Balance Sheets across periods.
9. Export Options: It can be exported as PDF, Excel, or printed directly.

Go to Gateway of Tally > Balance Sheet

Trial Balance in Tally Prime

What is a Trial Balance?

A Trial Balance is a summary of all ledger accounts with their respective debit and credit balances. It helps in verifying whether the books are mathematically correct (i.e., total debits = total credits).

Key Points:

1. Shows All Ledgers: Includes both profit & loss and balance sheet accounts.
2. Check Accuracy: Helps detect errors in bookkeeping before preparing final accounts.
3. Balances Totals: The debit and credit columns must match.
4. Period-Specific: You can generate it for any date range.
5. Group-Wise View: You can view trial balance group-wise or ledger-wise.
6. Drill-Down Enabled: Each line can be expanded for deeper insight.
7. Useful for Auditors: Provides a quick overview of account balances.

Go to Gateway of Tally > Display More Reports > Trial Balance

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