Question

Distinguish between journal and ledger?

Answer 1

The journal and the ledger are the most important books of the double entry mechanism of accounting and are indispensable for an accounting system. The differences between journal and ledger are
$$\begin{array}{ccc}\text{Basis}& \text{Journal}& \text{Ledger}\\ \text{Nature of Book}& \text{The journal is the book of first entry}& \text{The ledger is a book of secondary or final}\\ & \text{(Original entry)}& \text{Entry}\\ & & \\ \text{Chronological Analytic}& \text{The journal is the book for chronological}& \text{The ledger is the book for analytical}\\ \text{at Record}& \text{record.}& \text{record}\\ \text{Format}& \text{A journal has five column - Date,}& \text{Ledger has four identical columns on}\\ & \text{Particulars, Ledger Folio, Debit Amount,}& \text{debit and credit side - Date, Particulars,}\\ & \text{credit Amount}& \text{Journal Folio and Amount}\\ \text{Classification}& \text{Transaction is the basis of classification}& \text{Account is the basis of classification of}\\ & \text{Of data within the journal}& \text{data within the ledger}\\ \text{Process of Recording}& \text{Process of recording in the journal is}& \text{The process of recording in the ledger is}\\ & \text{called journalising.}& \text{Known as posting.}\end{array}$$