Difference between Journal and Ledger PDF

Preview

Summary

nothing much...

Description

BASIS FOR COMPARISON

JOURNAL

LEDGER

On the basis of recording

Recording transactions in the journal is the first stage of accounting

Recording in the ledger is the second stage of accounting.

On the basis of nature

Journal is the book of prime or original entries

Ledgers are the books of final entry.

On the basis of method/ process of recording

Process of recording entries is known as journalization

The method of recording in the ledger is known as posting.

On the basis of use

Journal is used on a daily basis to record transactions in a chronological manner

Ledgers are used periodically such as weekly, monthly.

On the basis of preparation

Journals are prepared on the basis of source documents such as vouchers, bills

Ledgers are prepared on the basis of a journal.

On the basis of balancing

Journal cannot be balanced

Except nominal account, all other accounts will get balanced in the ledger.

On the basis of narration

Narration is given after each journal entry showing the details of the transaction

No such narration is required in the ledger.

On the basis of information

In the journal, entire facts about accounts activity is not possible at a time

Ledger makes it possible to provide full and entire facts....