Difference between JOURNAL and LEDGER

   

The word “journal” has been derived from word French”Jour” its means that a day and that is name as journal its means a daily. Transactions are daily recorded in the journal and it is in detail on”DAY BOOK” in this book daily transaction was recorded. It has following features:

1.   Transaction is first all of recorded in the general journal and its first step of double entry system it is called book of original Entry.

2.   A transaction is first recorded on the same day of day book that is Day Book and Chronological Book.

For each transaction they have two concerned accounts these are first Debited and second are credited. These are also post in ledger that is “Subsidiary Book”.

Whereas,

    The ledger is the king of all book accounts because all the transactions and entries from the book of original entry it must be post in ledger book. Ledger has contains classified record of all transactions. All transactions are related to cash it must be put in one place and all transactions with a customer or supplier must also be assembled at one place. The book in which transaction is classified that is ledger.