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Chart of Difference Between Journal and Ledger

The journal is the book of original entry where transactions are recorded in chronological order. The ledger is the final book of accounts where transactions from the journal are posted to individual accounts. Key differences are that the journal does not show account balances while the ledger makes it easy to see balances, and financial statements can be prepared directly from the ledger but not the journal.

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rohit kumar
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239 views1 page

Chart of Difference Between Journal and Ledger

The journal is the book of original entry where transactions are recorded in chronological order. The ledger is the final book of accounts where transactions from the journal are posted to individual accounts. Key differences are that the journal does not show account balances while the ledger makes it easy to see balances, and financial statements can be prepared directly from the ledger but not the journal.

Uploaded by

rohit kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Chart of Difference between Journal and Ledger

Basis of
Journal Ledger
Difference
Journal in Accounting is the
Ledger is a book of account in
process of analyzing and recording
Meaning which we kept all the transactions
of business transactions in
of a particular account separately.
chronological (day to day) order.
Type it is the subsidiary book It is the final book of account.
In the Ledger, the transactions
In the journal, all transactions are related to a single account(Cash,
Order of
recorded in chronological (day to Bank etc.) are recorded in
Recording
day) order. chronological (day to day) order in
a particular ledger account.
Name of Process Journalizing Posting from journal to ledger.
In the format of the journal, debit In the format of the Ledger, debit
Format and credit are two different and credit are two different sides
columns. of an account.
All transactions are posted in the
All transactions are recorded in the
Nature of Account particular ledger account according
same book called journal.
to the nature of an account.

It is very difficult to know the The ledger is prepared to know the


Balance
balance of a particular account. balance of a particular account.
Journal contains a narration for Ledger may or may not contain a
Narrations
every transaction narration of every transaction.
The book of prime or original entry The book of second entry and
Also known as
book statement of account.
Process of It does not include the process of It includes the process of balancing
Balancing balancing. or closing of a ledger account.

We can prepare financial statement


Financial We can not prepare financial
directly from the ledger but not so
Statement statement directly from the journal
easy for larger businesses.

The Journal not providing any In ledger, we can get know about
Revenue information about the total the revenue earned during the year
revenue earned during the year. from the total Sales accounts.
It is very difficult to know the
It is very easy to know the closing
Closing Balances closing balance of the assets at the
balance of the assets at the end of a
of the Assets end of a particular accounting
particular accounting period.
period.
Journal contains a ledger folio Ledger contains a journal folio
Folio
column. column.
Journal contains a total of five Ledger contains a total of eight
Total Columns
columns columns.
It has two sides i.e. debit and credit
Sides It does not have any side.
side.

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