Difference between Journal and Ledger

Magazine

1. It is the book the main entrance.

2. Just transaction creates is recorded in the diary

3. Transactions are recorded in order of occurrence ie strictly in order of dates.

4. Narration (brief description) is written for each item.

5. Ledger sheet is written

6. Relevant information can not easily ascertain for example cash in hand can not be found easily.

7. Final accounts can not be prepared directly from the newspaper.

8. Accuracy of the books can not be tested.

9. Amount of debt and credit of a transaction are recorded in the adjacent columns.

10. Journal has two columns one for the amount of debt for another amount of the credit.

11. Journal is not balanced.

12. With the computerization of accounting journal can not be used for routine operations such as receipts, purchases, sales etc.



Ledger

1. It is the book of final entry.

2. Transactions are entered in the register after the same have been recorded in the journal.

3. Transactions are classified according to their nature and are grouped under the relevant accounts.

4. The narrative is not necessary.

5. Folio magazine or sub-magazine is written.

6. Since the operations of a particular nature are grouped together in one place, so the information can be ascertained.

7. Ledger is the basis for preparation of final accounts.

8. Accuracy is tested by means of books list of balances.

9. Amount of debt and credit of a transaction are recorded in two different parts of two different accounts.

10. Ledger has two sides: on the left side, right side is the debit portion of the claim.

11. Each account in the ledger is balanced at the appropriate time.

12. Ledger can not be avoided. However Ledger leaf or a computerized register. But Ledger is a must....