Accountancy, asked by Anonymous, 19 days ago

what is difference between journal and ledger??
 \\  \\

Answers

Answered by orion53
3

Answer:

Journal

Ledger

Definition

Journal is a subsidiary book of account that

of account that classifies transactions transactions recorded in a journal.

records

Ledger is a principal book

Order

The journal

transactions get recorded in chronological order on the day of their

occurrence

The ledger classifies the

transactions from the journal under the respective accounts to which they are related

Explanation

Each journal

The ledger accounts do

entry has a

detailed

narration of the

transaction

not have a each

detailed narration of

transaction.

The journal does not reveal the total results of a transaction

The Ledger

accounts help reveal the result of transactions for a particular account

Trial Balance

The journal

cannot help prepare the Trial

Balance directly Trial Balance

Financial Statements

The journal does not have a direct role in the preparation of financial statements e Profit and Loss Account or Balance Sheet.

The ledger helps to

prepare the

The balances from different ledger

accounts help to prepare

financial statements like Profit and Loss Account of Balance Sheet.

Opening Balance

A journal does

not have an

opening balance and it is only concerned with the current transactions that occur on a day to-day basis

Some ledger accounts have an opening balance, which is the closing balance from the previous year

Explanation:

hope it helps

☺️☺️☺️☺️☺️

Answered by Anonymous
3

ㅤㅤㅤㅤ \huge\underline\mathrm\green{Answer:-}

The main differences between journal and ledger are as given below :-

ㅤㅤㅤㅤㅤㅤㅤ \large\sf\fbox\red{Definition}

\large\mathrm\blue{✧ㅤjournal:-}journal is a subsidiary book of account that records transactions.

\large\mathrm\blue{✧ㅤledger:-}ledger is a principal book of account that classifies transactions recorded in a journal.

ㅤㅤㅤㅤㅤㅤㅤㅤ\large\sf\fbox\red{Order}

\large\mathrm\blue{✧ㅤjournal:-}The journal transactions get recorded in chronological order on the day of their occurrence.

\large\mathrm\blue{✧ㅤledger:-}The ledger classifies the transactions from the journal under the respective accounts to which they are related.

ㅤㅤㅤㅤㅤㅤ\large\sf\fbox\red{Explanation}

\large\mathrm\blue{✧ㅤjournal:-}Each journal entry has a detailed narration of the transaction.

\large\mathrm\blue{✧ㅤledger:-}The ledger accounts do not have a detailed narration of each transaction.

ㅤㅤㅤㅤㅤㅤㅤㅤ \large\sf\fbox\red{Result}

\large\mathrm\blue{✧ㅤjournal:-}The journal does not reveal the total results of a transaction.

\large\mathrm\blue{✧ㅤledger:-}The Ledger accounts help reveal the result of transactions for a particular account.

ㅤㅤㅤㅤㅤㅤ\large\sf\fbox\red{Trial\: Balance}

\large\mathrm\blue{✧ㅤjournal:-}The journal cannot help prepare the Trial Balance directly.

\large\mathrm\blue{✧ㅤledger:-}The ledger helps to prepare the Trial Balance.

ㅤㅤㅤㅤ\large\sf\fbox\red{Financial\: Statements}

\large\mathrm\blue{✧ㅤjournal:-}The journal does not have a direct role in the preparation of financial statements like Profit and Loss Account or Balance Sheet.

\large\mathrm\blue{✧ㅤledger:-}The balances from different ledger accounts help to prepare financial statements like Profit and Loss Account or Balance Sheet.

ㅤㅤㅤㅤㅤ\large\sf\fbox\red{Opening\: Balance}

\large\mathrm\blue{✧ㅤjournal:-}A journal does not have an opening balance, and it is only concerned with the current transactions that occur on a day-to-day basis.

\large\mathrm\blue{✧ㅤledger:-}Some ledger accounts have an opening balance, which is the closing balance from the previous year.

ㅤㅤㅤ\huge\underline\mathrm\green{Conclusion:-}

Although there are significant differences between Journal and Ledger, both have a critical role in accounting. They have a vital role to play when preparing financial statements like Profit and Loss Account or Balance Sheet.

Similar questions