Question

What is difference between trial assets and total assets, the difference between trial (liabilities plus equity) and total (liabilities plus equity)

Answer 1

Trial Assets:- Trial Assets is nothing but a Trial balance meaning by a record of all the balance of ledger accounts that are to be written in Trial balance. Posting of ledger account balances in Trial balances gives us the equal total of debit and credit balances.

Total Assets:- Total Assets is nothing but a Balance Sheet which is prepared to check whether all assets are equal to liabilities. However, it shows the accuracy of financial position of a company.

Trial (Liabilities plus equity) :- Trial balance includes the ledger balances of Shareholder's equity account and Liabilities account such as Creditors, Loans etc. However, total of Liabilities and equity will always be equal to total assets meaning by, credit balances of liabilities and equity will be equal to debit balances of total assets.

Total (Liabilities plus equity):- Balance sheet includes liabilities and equity which means that Total assets will always be equal to total liabilities and equity. If there is any increase/decrease in any assets, there will be a corresponding increase/decrease in Liabilities plus equity.