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Distinction between Journal and Ledger

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Journals as well as ledgers are actually take place only in case of business transactions so that every financial record is kept in accounting system. Detailed information related to individual transaction can get stored in one of different journals, but information in journals finally get summarized and then transferred to ledger. In regard to posting process, this may take place on daily on annual basis at end of accounting period.

Difference between journal and ledger

JOURNAL

  • It is the book that includes prime entry
  • The transaction gets extracted and finally recorded in journal
  • Accuracy can’t get tested in journal
  • Ledger folio is written
  • Journal is not balanced
  • Debit and credit amounts in case of transaction gets recorded in adjacent columns

LEDGER

  • It is a book that records final entry
  • Transaction can be classified depending on nature and grouped in concerned accounts
  • Narration is not necessary
  • Transaction gets posted in ledger and finally gets recorded in journal
  • Accuracy is tested through list of balances
  • Debit and credit amounts get recorded in different sides of different accounts

 

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