What is the difference between a trial balance and a balance sheet?

A trial balance is an internal list of every ledger account with its debit or credit closing balance. Its job is to check that total debits equal total credits before the final statements are prepared.

A balance sheet is a financial statement that shows the business's assets, liabilities and capital as on a particular date. It is built from the trial balance after the profit and loss account is prepared, and it is the one shared with banks, auditors and other outside parties.

A trial balance can tally and still hide errors such as a wrong ledger head, so it is a first check, not proof that the books are correct.