Basis of
Distinction |
Journal |
Ledger |
1. Book |
It is the book of prime entry. |
It is the main book of account. |
2. Stage |
Recording of entries in these books is the first stage. |
Recording of entries in the ledger is the second stage. |
3. Process |
The process of recording entries in these books is called “Journalising”. |
The process of recording entries in the ledger is called “Posting”. |
4.Transactions |
Transactions relating to a person or property or expense are spread over. |
Transactions relating to a particular account are found together on a particular page. |
5. Net effect |
The final position of a particular account cannot be found. |
The final position of a particular account can be ascertained just at a glance. |
6. Next Stage |
Entries are transferred to the ledger. |
From the Ledger, first the Trial Balance is
drawn and then final accounts are prepared. |
7. Tax authorities |
Do not rely upon these |
Rely on the ledger for books assessment purpose. |
