| Difference | Statement of Affairs | Balance Sheet |
| 1. Meaning | A statement showing the estimated values of assets and liabilities as on a particular date is known as Statement of Affairs. | A statement showing the financial position of the business in the form of its assets and liabilities at their correct values as on a particular date is called Balance Sheet. |
| 2. Accounting system | Statement of Affairs is prepared under the single entry system of accounting. | Balance sheet is prepared under the double entry system of accounting. |
| 3. Trial balance | Trial balance is not prepared before preparing this statement. | Trial balance is prepared before preparing a Balance sheet. |
| 4. Objective | It is prepared to find out capital as well as profit or loss of the business on a particular date. | It is prepared to ascertain the financial position of the business on a particular date. |
| 5. Reliability | As it is prepared on the basis of incomplete records and informations, the amounts and informations shown in this statement are not fully reliable. | As it is prepared on the basis of actual balances, the amounts and informations shown in Balance sheet are fully reliable. |
| 6. Adjustments | For preparing this statement additional information or adjustments are not considered. | For preparing Balance sheet necessary adjustments are considered. |
| 7. Informations | In this statement, the information about the financial position of business may not be complete. | In this statement, the information about the financial position of business are complete. |
| 8. Comparison | By this statement comparison with previous year or with firms with similar business nature is not possible due to the absence of uniform base. | By this statement comparison can be made with previous year or firms with business of similar nature. |
| 9. Financial position | Financial position of the unit can’t be judged with the help of this statement. | With the help of Balance sheet, financial position of the unit can be judged. |
| 10. Omission | Omission of any asset or liability cannot be detected easily. | Omission of any asset or liability can be easily detected. |
| 11. Arithmetical accuracy | Arithmetical accuracy can’t be scrutinised/ verified as trial balance is not prepared. | As the trial balance is prepared, arithmetical accuracy can be scrutinised/ verified. |
