Question

Distinguish between journal and ledger.

Answer 1

Basis	Journal	Ledger
1. Recording	As and when transactions take place entries are made in the journal.	In a ledger, entries may be posted either on the same day or at the end of a specified period such as weekly or fortnightly especially when subsidiary books are maintained.
2. Stage of recording	Recording in the journal is the first stage.	Recording in the ledger is the second stage, which is done on the basis of entries made in the journal.
3. Order of recording	Entries are made in chronological order, i.e., date wise in the order of occurrence.	Entries are made account wise.
4. Process	The process of recording in the journal is called journalising.	The process of recording in the ledger is called posting.
5. Facilitating preparation of trial balance	Amount from the journal does not serve as the basis for preparing a trial balance.	Ledger balance serves as the basis for preparing trial balance.
6. Basis of entries	Entries in the journal are made on the basis of source documents.	Posting is done in the ledger on the basis of journal entries.
7. Net position	Net position of an account cannot be ascertained from the journal.	Net position of an account can be ascertained from the ledger account.