Difference Between Balance Sheet And Income Statement

Balance Sheet is the statement of assets, liabilities and the shareholder equity for a specific time period and the Income statement is the statement of company’s revenue and expenses for an accounting period.  They are different from so many points which we are going to discuss below in detail with key difference between Balance Sheet and Income Statement.

Balance Sheet:

Balance Sheet is a type of financial statement which shows the current condition of a company which also illustrates the company’s book value. It also refers to the company’s current worth at given point. It shows the business assets, liabilities and the company’s shareholder equity. It is prepared on the last day of the year and the net balance which is derived from Balance Sheet is transferred to the Capital Account.

Difference Between Balance Sheet And Income Statement

Income Statement:

Income Statement refers to the financial statement of a company that reports the financial position for a specific period of time. It is a type of statement that reflects the position of a specific company that shows that whether the company is going in a profit or loss with respect to financing such as revenue and expenses due to which is also called the Profit and Loss Account. For further detail information must read the below listed key difference between Income Statement and the Balance Sheet.

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Key Difference between Balance Sheet and Income Statement

Following are the main points that clear the key differences between Balance Sheet and Income Statement.

Balance Sheet	Income Statement
Balance Sheet is referred to the financial or income statement which shows the revenues and expenses in summarized form for a particular accounting period	Income Statement is a type of financial statement of a company which shows assets, liabilities, and capital on a given date
Balance Sheet is prepared on the last day of the accounting period	Income statement is prepared for an accounting period
Accounts are transferred to Balance Sheet are not closed	Accounts are transferred to Income Statement are closed
Balance Sheet shows the financial position of a business	the income statement shows that how profit is earned and how expenses are incurred by a business
Balance Sheet consists of assets, liabilities, and capital	Income Statement consists of income and expense
The balance which is derived from balance sheet is transferred to capital account	The balance which is derived from balance sheet is transferred to capital account