Explain The Difference Between Journal And Ledger

December 1st, 2009 Comments off
Share |

Difference Between Journal And Ledger

Journal

Ledger

Journal is the book of prime entry where the transactions are first recorded and then to the ledger ( 1 stage) Compared to Journal, the ledger is recorded after the journal ( the 2 nd stage)
Journalizing is the  process of recording entries in the book of prime entry The process of recording entries in the ledger is called “Posting”
The final position or balance of a particular account cannot be found The final position or balance of a particular account can be determined at a glance.
Entries are transferred to the ledger From the ledger, the trial balance is drawn and then the final accounts are prepared
Transactions relating to an individual or property/fixed asset or expenses are spread over. Transactions relating to a particular account are posted in  a particular page
Normally, outsiders do not rely upon these books Outsiders, tax authorities rely other ledger.
The page number of journal are entered in Journal folio column The page number of ledger are entered in Ledger folio column

Comments are closed now.

Financial Accounting

 
 

Advertise Here | Brain Teasers/Puzzles | Greeting Cards | Inspirational Quotes | Jokes/Humor | Useful Links | Motivational Stories | Resource | Shopping | Share/Express Your Views | Testimonials | Universities/Colleges | Words of Wisdom from Religions | FREE POSTING OF ACCOUNTING & FINANCE JOBS VACANCY|