The ones who have studied business are very well acquainted with the two terms ‘journal’ and ‘ledger,’ but to the ones who are new to this area, i.e., the business students, these terms are often new and difficult to understand. They often face difficulties in writing answers such as distinction between journal and ledger homework answers.
The ultimate purpose of starting any business is to make money which implies that a firm necessarily requires to keep track of its money related actions. These money related actions are traced and recorded by a process that we call as ‘financial accounting.’ There are multiple procedures that are followed in financial accounting and bookkeeping is one of them. One gets to know the terms mentioned above, i.e., journal, and ledger while studying bookkeeping.
These two terms sound to be the same to the inexperienced novices in business, but they differ widely from each other and have an array of differences to one’s surprise if one tries to find out. To know them in high details, one can opt for several online homework help services available to students now.
Know the distinction of Journal and ledger
While both journal and ledger appear to have the same purpose of keeping track of company’s transactions, one needs to know that they are basically distinct. Journals keep track of all the transactions done by the company sequenced chronologically, i.e., according to the time the transactions take place.
On the other hand, these transactions are passed on to the ledger after putting many efforts into them during classification of each of them into separate accounts. Homework answers such as distinction between journal and ledger homework answers often seek these basic differences between the two books.
Transactions are categorized into different accounts in a ledger
While journal consists of entries of transactions without any appropriate classification and merely on the basis of their order of occurrence with respect to time, ledger is more specific and sorted out in terms of accounts and categorization.
In other words, transactions are recorded in a journal instantly when they are done, after which they are identified and classified into several types of account categories and passed on to ledger.
Distinction known to students
Although the content of both ledger and journal is the various transactions done by a firm, yet it must not be forgotten that there is a basic difference of type between both the books. Whereas journal is a subsidiary book, ledger is a principal book. One simply cannot assume the two to be the same. Such points are necessary to keep in mind if one wants to increase his score in academics. Moreover, various online homework help sites can help a lot in this respect.
Journal and ledger: Important pillars of double entry system
When studying the concept and writing answers such as distinction between journal and ledger homework answers, one must also know the origin of both which is the broader category of double entry system. Both journal and ledger are important books of double entry system, which states that every transaction affects two accounts, which is a case quite evident to anyone.
Moreover, there are other names of the two as well, which shows the distinct character of both the books. While journal is also called as book of original entry, ledger is called book of second entry. These names lay emphasis on the fact that second entry is done in ledger with the first one being done in journal.
Distinct names for recording process
Journal and ledger are so distinct that the similar appearing processes of recording transactions in the two books too have different names. The process of making entry of any transaction in a journal is called as journalizing. On the other hand, the process whereby the same transaction is passed on to ledger after categorization is called posting.
If one tries to look into the two processes closely, he will find the certain differences in the two. It will be more clear to one that while journal holds chronological record of transactions, ledger holds ground on more analytical basis.
Mentioning such precise differences in your homework answers such as distinction between journal and ledger homework answers can be of great help to achieve highest possible marks in your assignment.
Difference of other contents of the two books
The two books do not only differ in names and terms but the other contents included in the two also proved to be apparently distinct. By other contents, we mean the inclusion of narration that is mandatory in a journal entry, while the same is insignificant in the ledger one. The journal entries are not generally balanced and also do not require it, while the ledger entries are to be compulsory balanced.
Single and compound journal entries
One gets to study the various types of entries that have to be recorded while bookkeeping. Those in a journal may be either a single one or a compound one. The difference between the single and compound entries is quite easy to understand.
Single entries involve the occurrence of one transaction, that is, one debit and a corresponding credit. Compound entries, on the other hand, may involve either one debit and more than one credit or more than one debits and credits both.
One needs to mention such points of differences in his homework answers such as distinction between journal and ledger homework answers. Online homework help services can give a deeper insight into the small and big differences between the two that is necessary to mention in your homework to achieve higher marks in academics.