Difference Between Ledger and Journal

Difference Between Ledger and Journal

JOURNAL


* Journal is the book of prime entry.

* As soon as transaction originates it is recorded in journal.

* Transactions are recorded in order of occurrence.

* Narration is written for each entry.

* Ledger folio is written.

LEDGER


* Ledger is the book of final entry.

* Transactions are posted in the ledger after the same have been recorded in the journal.

* Transactions are classified according to the nature and are grouped in the concerned account.

* Narration is not requried

* Folio of the journal or sub-journal is written.

What is Journal

What is Journal

Journal is a daily book of record or primary book of records where all business transaction or its effect has recorded first time, because of that this book is called prime entry book of account.

The word journal is driven from the french language where the word 'JOUR' means a day whereas journal means a daily book of records. In short, a businessman has  to record all the transaction in this primary book of account which had taken place during that day

Format of Journal: