Difference In between Journal and Ledger
Journal
1. Is the e-book of prime entry.
two. As shortly as transaction originates it is recorded in journal
three. Transactions are recorded in order of event i.e. strictly in purchase of dates.
4. Narration (short description) is created for each and every entry.
5. Ledger folio is written
6. Relevant data cannot be ascertained easily e.g. money in hand cannot be discovered out simply.
seven. Closing accounts won”t be able to be ready right from journal.
8. Accuracy of the guides won”t be able to be examined.
nine. Debit and credit amounts of a transaction are recorded in adjacent columns.
ten. Journal has two columns one particular for debit quantity an additional for credit amount.
eleven. Journal is not balanced.
twelve. With the computerization of accounting journal may well not be employed for program transactions like receipts, purchases, income and so forth
Ledger
1. Is the e-book of ultimate entry.
2. Transactions are posted in the ledger after the very same have been recorded in the journal.
three. Transactions are classified in accordance to the nature and are grouped in the worried accounts.
four. Narration is not necessary.
5. Folio of the journal or sub-journal is created.
six. Since transactions of specific nature are grouped at one location consequently appropriate info can be ascertained.
7. Ledger is the basis of planning last accounts.
eight. Accuracy of the textbooks is tested by signifies of listing of balances.
9. Debit and credit quantities of a transaction are recorded in two different sides of two various accounts.
10. Ledger has two sides: left side is debit aspect right aspect is credit score facet.
eleven. Each and every account in the ledger is balanced at suitable time.
twelve. Ledger can not be averted. Even so it may well be loose leaf ledger or a computerized ledger. But ledger is a ought to.
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