|
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 |