The journal and the ledger are the most important books of the double entry system of accounting. Following are the points of difference between these two types of books:
1. The journal is the book of first entry (original entry); the ledger is the book of second entry. It is the goal where all the entries in the journal find their ultimate destination.
2. The journal is the book of chronological record; the ledger is the book for the analytical record.
3. The journal, as a book of source entry, ordinarily has greater weight as legal evidence than the ledger.
4. The unit of classification of data within the journal is the transaction; the unit of classification of data within the ledger is the account.
5. The process of recording in the journal is called journalising; the process of recording in the ledger is called posting.
1. The journal is the book of first entry (original entry); the ledger is the book of second entry. It is the goal where all the entries in the journal find their ultimate destination.
2. The journal is the book of chronological record; the ledger is the book for the analytical record.
3. The journal, as a book of source entry, ordinarily has greater weight as legal evidence than the ledger.
4. The unit of classification of data within the journal is the transaction; the unit of classification of data within the ledger is the account.
5. The process of recording in the journal is called journalising; the process of recording in the ledger is called posting.