Difference Between Similar Terms and Objects

Difference Between Journal and ledger

Journal vs ledger

Journals and ledgers seem to be the same things. These are where important information is recorded. It can be used for business, for school, for making a book, etc. These books are also where financial statements may be recorded. These books have so many things in common; this is why these two are easily thought to be the same. However, the same as their features are, they are still different from each other. People tend to confuse them as the same, but the truth is, there are so many significant differences between a journal and a ledger. If you already know the difference between the two, you will find out that it is not that difficult to distinguish one from the other after all.

The journal is a book of prime entry. Meaning, whatever has taken place inside every transaction (whoever attended, the minutes of the discussion, etc.) should be written down in the journal. The journal is where transactions are recorded after these transactions happen. The transactions that happened must be recorded in the journal in a chronological order, or in the proper order as the event took place. There should be a brief description of each event in the entry. The journal is also where the ledger folio is written. If there is other information related to the event, as long as there is no evidence, then it cannot be jotted down in the journal. The final account must not be written as preparation on the journal. The journal must not have any erasures or mistakes. The way debit and credit accounts are written in the journal must be in adjacent columns. These days, with all the technologies, especially the computer, receipts, sales, and purchases may not be recorded in the journal anymore.

The ledger on the other hand is the book of final entry. After the transactions are recorded in the journal, the information will also be recorded in this book afterwards. Transactions will be categorized according to the concerned amounts. Narration is not allowed in the ledger. The ledger is where the folio of the journal and the sub-journal is recorded. Relevant information can be ascertained in the ledger because of the grouped transactions. In preparing for the final account, the ledger plays a vital part, because the ledger is the basis for the final account. The books are sure to be accurate because it is tested by the list of balance. There will be two different accounts for debit and credit. The left side of the ledger is the debit, while the right side of the ledger is the credit. All of the accounts found in the ledger are balanced and appropriate. The ledger is a must and cannot be avoided.



The journal is the main and primary account recorder, while the ledger is more of a secondary account recorder.

The journal is the prime entry, while the ledger is the final entry.

The ledger is somewhat like the back up for the journal.

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1 Comment

  1. A very well described article on Journal and Ledger, well-described between Journal and Ledger. We also have tried to present Accounting articles in a simple and in an understandable manner especially for students who were beginners in Accounting.

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