Difference between Journal and Ledger

Difference between Journal and Ledger is that the journal is the first step of bookkeeping and ledger is followed by the journal. Because the bookkeeping involved the predefined standard process of recording all the business transactions in the books of account. This process is known as the accounting cycle. Accounting cycle starts from the journal and followed by ledger, trial balance and final accounts.

Meaning of Journal

Journal in Accounting is the process of analyzing and recording of business transactions in chronological order. This book is also called the Book of Prime or Original Entry book. The journal entries are the foundation of the accounting system and it is also a first step of the accounting cycle.

Meaning of Ledger

It is a book of account in which we kept all the transactions of a particular account separately. With the help of ledger, we get whole information about a particular account at a single place. but in the journal, all the transactions are recording date wise but if we want the total balance of a particular account then it is very difficult to get it.

Journal and ledger

Difference between Journal and Ledger



The book in which all the transactions are recorded, as and when they arise is known as Journal. The book which enables to transfer all the transactions into separate accounts is known as Ledger.
It is a subsidiary book. It is a principal book.
Book of original entry. Book of second entry.
Chronological record Analytical record
The process of recording transactions into Journal is known as Journalizing. The process of transferring entries from the journal to ledger is known as Posting.
Need not to be balanced. Must be balanced.