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What is trail balance? what is Profit & loss a/c ? what is
Balance sheet?
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Answer Posted / munmun sharma
Trial Balance is the process to check the accuracy of the
accounts made so far in the Ledger. Profit and loss account
is made to asscertain the profit earned and the loss
incurred. This statement is also called 'Income Statement.
Balance sheet is made to know the financial position on the
last day of financial year of the business. This statement
is also called a Position statement. Profit & Loss A/C and
Balalnce sheet are known as Final Accounts.
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