Difference Between Ledger and Journal:
What is the difference between ledger and journal?
The journal and the ledger are the most important books of the double entry system of accounting. Following are the points of difference between these two types of books:
- The journal is the book of first entry (original entry); the ledger is the book of second entry. It is the goal where all the entries in the journal find their ultimate destination.
- The journal is the book of chronological record; the ledger is the book for the analytical record.
- The journal, as a book of source entry, ordinarily has greater weight as legal evidence than the ledger.
- The unit of classification of data within the journal is the transaction; the unit of classification of data within the ledger is the account.
- The process of recording in the journal is called journalising; the process of recording in the ledger is called posting.
You may also be interested in other articles from “Ledger” chapter:
Other Related Accounting Articles:
- Form of Ledger and Method of Posting
- Definition and Explanation of Ledger
- Advantages of Ledger
- Single Column Cash Book
- Subsidiary Ledger
- Sales Returns Book
- Example of Ledger and Preparing Ledger Accounts
- Sales Day Book
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