|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