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The Difference between journal vs. ledger | Basics idea can know

Do you want to know about the difference between Journal vs. Ledger?

The difference between journals and ledger is that the journal book is the entry book of all transactions and the ledger is the recording process of the journalize entry. In the double entry accounting system, every transaction has two effects and equal. One is debit and another entry is credit in the recording process. After the ledger accounts, transactions recorded in the trial balance, financial statement and then closing book to end the process of transactions as like a accounting cycle. If you want to know about difference between journal and ledger, you must read importance of bookkeeping.

Journal and ledger meaning:

Now we can discuss about the definition about the ledger and journal is as follows;

Definition of journal

The journal is the regular book to maintain daily transactions which are recorded for the first time when the transaction occurs. In this daily transactions are recorded orderly, so that it can be a reference for the future. In the journal entry, there has two highlighted column one is debit and other is credit. And the transaction is affected two sides are equal amount.

The narration is given briefly for every transaction to support for each entry. When the whole process is done called journal and known as journalizing. The journal entry form to five columns which is date, particulars, reference journal, debit amount and credit amount. It can be two parts which are described below;

  • Single Entry: when the transaction occurs one debit and another credit amount is called single entry.
  • Combined Entry: When the transaction occur more than debit and one credit amount or one debit and more than credit amount but the two sides are equal is called combined entry.

Definition of Ledger:

Ledger account is the main books which are set in the accounts. The transactions are recorded in journal entry then the classified transactions are posted in the separate ledger accounts. The posting is decorated his nature of accounts such as nominal, personal and real accounts and every posting has brief description known as a ledger.

After that when a posting of accounts posted in the ledger accounts individual head of account open for one account. The format of the ledger is ‘T’ form and having two sides of these types of accounts, one side is recorded in debit account and another side is credit name of an account.

Finally, the end of the month the balance of debit and credit will be equal and the difference amount of debit and credit is shown in deficit side of the balancing figure. When the two side are determined and the balanced then one side shown deficit, if the debit amount is bigger than credit then the credit has deficit amount for the balance and the name of the entry is balance c/d at the end of the month and the balance c/d (balance carried down) is the beginning of the preceding month which named is balance b/d (balance brought down). On the other hand, if the credit side is bigger than debit side than the deficit side is equal to the amount of balance c/d (carried down)and the amount is carried forward beginning of the next month which named balance b/d (brought down).

Difference between Journal and Ledger in tabular form:

Comparison of Basics Journal Ledger
Meaning When the transaction is recorded in the book is called Journal After journalize the entry entries are pasted as per head name is called ledger.
What is it? Journal is a subsidiary book of accounts Ledger is the principal book of accounts
Also known as Known as original entry Known as secondary entry


Recoding system is chronological

Its accounts recording are head wise.

Process The recording process named journalize This recording process named posting
How are transactions recorded? As a sequence As accounts head wise
Debit and credit Column wise To determine debt amount credit head and credit amount debit head.
Narration Narattion is must Not necessary
Balancing No need to be balanced Must be balanced as per head.

Differences between journal and ledger:

The difference between journal and ledger accounts is discussed below is as follows;


  1. Journal is the book of accounting where the daily transactions are recorded chronologically first and it was written as per date wise.
  2. The journal is known as a subsidiary book of the recording process.
  3. It is known as first entry or original books of accounting.
  4. Journal entry is two column
  5. It is prepared based on daily vouchers, bills, payment receipts etc.
  6. Journalize amount is not mandatory of balanced.
  7. To procedure of the accounting original entry is known as journalizing which is known as a journal entry.
  8. The journal entry would be later subdivided like as sale book, sales day return, purchase day book, purchase day return book, petty cash book.


  1. Ledger accounts are posted entry as per head wise and it will be recorded analytically after journalize the entry.
  2. It is known as a principal book of entry.
  3. Ledger is the well known as a book of secondary
  4. The entry is recorded as per accounts head.
  5. It is preparing based on journalized entry head of accounts.
  6. The ledger accounts are mandatory of balancing and deficit side transferred next preceding beginning of the month.
  7. The process of recording entry is called posting.
  8. The ledger accounts would be divided head of accounts such as debtor, creditor etc.

In the above discussion about journal and ledger accounts, we can determine that the journal entry is the recording book of daily transaction known as journalizing and the transaction must have two effects as per double-entry rules. Then the transaction will be recorded in recording process known as posting of a ledger. the posting is recorded as per head of accounts and after that, the balancing figure of two sides determine a balance and the balance is carried forward to preceding month as a beginning balance. This balance transferred to trial balance and the amount of trial balance is to prepare for the financial statement if the process is merely flaw then the financial statement is hard to prepare and the accounts will not be prepared for a particular period.

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