Difference between Journal and Ledger

Nov 30 -0001

Distinguish, differentiate, compare and explain what is the Difference between Journal and Ledger. Comparison and Differences.

S.No.	Journal	Ledger
1	Journal is book of primary entry.	Ledger is book of final entry.
2	As soon as a transaction originates it is recorded into the journal.	Transactions come into the ledger from the journal.
3	All the transactions are recorded in chronological order.	The transactions are categorized into the accounts.
4	In journal narration is required and written in each and every entry.	No narration required.
5	Here the ledger folio number is written.	The Folio number of the journal or sub-journal is written.
6	The Relevant information cannot be ascertained readily.	As the transactions of particular nature are grouped at one place therefore the relevant information can be ascertained easily.
7	The ledgers are prepared from the journal and final accounts cannot be prepared directly from a journal.	Through Ledger trial balance is prepared which is the basis of preparing the final accounts.
8	The accuracy of the accounts books cant be tested through journal.	The accuracy of the books is tested by Trail balance which is prepared after closing of ledgers.
9	Debit and credit amounts are recorded in adjacent columns.	The Debit and credit are recorded in two different sides of different accounts.
10	In case of journal no balancing is done.	In ledger is balancing is done periodically.