Differences between Journal and Ledger

Journal and ledger are the most important books as far as accounting is concerned, here is the list of differences between two of them –

1. While journal is the book of primary entry while ledgers are the book of second entry in that it is from journal accounts are transferred to ledger.

2. While recording figures in journal, transactions are the basis of classification, while in ledgers, account is the basis of classification for recording figures.

3. Journal is the book of sequential order while ledgers are the book of systematic or analytical record.

4. Process of recording transaction in journal is called journalizing while the process of recording in the ledger is called posting in the ledger.

However both journal and ledger together are necessary in order to prepare financial statements that are true and fair.

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