Differences between Journal & Ledger

Book Keeping  - 5 marks question asked in 1995 & 2016

Differences between

Journal	Ledger
1. Book of Original entry	1. Book of Final entry
2. It is a Subsidiary Book	2. It is a Principal Book
3.  It is prepared from the  vouchers, receipts, bills, etc	3. It is prepared from the Journal.
4. Transactions are recorded in the journal in chronological order.	4. Transactions are posted in the ledger in classified form.
5.Narration is required	5. Narration not required
6.There is no scope for balancing the Journal	6. Balancing the Ledger is must
7. Journal is the Basis for Ledger.	7. Ledger is the basis for Final Accounts i.e., Profit & Loss Account and Balance Sheet.
8. In journal, ledger folio (L.F.) is written.	8. In ledger,  journal folio (J.F.) is written.
9. Recording of the transactions in the journal is called journalizing.	9. Recording of transactions in the ledger is called posting.

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