Question

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Give two differences between journal and ledger??

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Answer 1

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Difference between journal and ledger

$\huge\bold\orange{Journal}$

• Journal is is the first entry of financial transaction that is rightly summarised and recorded as per the double entry system

• Journal is more important than ledger because if it is done wrong then ledger can't be done right

• The format of journal is simple and we include date, particulars , ledger , folio , debit amount and credit amount .

• Journal is called book of original entry

• The act of journaling is called journalizing

• In journal entry is recorded as per date of transaction

• Balancing is not required in journal

$\huge\bold\purple{Ledger}$

• Ledger is recorded from the journal in a " T " format and its source of trial balance , income statement and balance sheet

• Ledger is dependent upon correctness of journal because if journal is recorded right then the ledger will follow along

• The format of ledger is " T " where we use date , particulars and amount in each side

• Ledger is called book of second entry

• The act of ledgering is called posting

• In ledger the entries recorded account wise

• Balancing is mandatory in ledger

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Answer 2

Answer:

The key difference between Journal and Ledger is that Journal is the first step of the accounting cycle where all the accounting transactions are analyzed and recorded as the journal entries, whereas, ledger is the extension of the journal where journal entries are recorded by the company in its general ledger account