COBOL-85 is a later version of COBOL language. COBOL-85 also known as VS COBOL-II provides more features than COBOL-74. Some of the features of COBOL-85 are:
1. In COBOL-85 we can use following delimiters such as END-IF, END-PERFORM,END-STRING,etc.
2. We can use EVALUATE verb in place of complex IF structures.
3. CALL statement can pass variables by CONTENT and BY reference. In COBOL-74 we can only use pass by reference.
4. A new verb CONTINUE is introduced in order to over come the limitations of NEXT SENTENCE verb.
5. COBOL - 85 supports 32 bit addressing mode.
There are many more differences, that you can find from any COBOL-85 book. You can refer the book 'COBOL PROGRAMMING - By M K Roy and Ghosh Dastidar'.
I hope now you are somewhat clear about the difference.