What is the difference between a journal and a ledger?
Journal | Ledger |
---|---|
It is the first entry of financial transaction summarized and recorded according to the double-entry system | A ledger is recorded from the journal in the format of a ‘T.” In addition to that, a ledger is the source of the income statement, trial balance, and balance sheet. |
If the journal is made correctly, then the only perfection can be added into the ledger | It is dependent on journal |
Date, ledger folio, particulars, credit amount, and debit amount | T format journal includes particulars, date and amount on both sides |
Called “book of original entry” | Called ‘book of second entry; |
BY Best Interview Question ON 07 Oct 2021