Difference Between Journal and Ledger



1. Journal is a book of accounting where daily records of business transactions are first recorded in a chronological order i.e. in the order of dates.

2. It is known as the primary book of accounting or the book of original/first entry.

3. It is prepared out of transaction proofs such as vouchers, receipts, bills, etc.

4. A journal is not balanced.

5. Procedure of recording in a journal is known as journalizing, which performed in the form of a Journal Entry.

6. It may be subdivided into a cash book, a sales day book, sales return day book, purchases day book, purchases return day book, B/R Book, B/P Book, Petty Cash Book.



1. A ledger is an accounting book in which all similar transactions related to a particular person or thing are maintained in a summarized form.

2. It is known as the principal book of accounting or the book of final entry.

3. It is prepared with the help of a journal itself, therefore, it is the immediate step after recording a journal.

4. Except nominal accounts all ledger accounts are balanced to find the net result.

5. Procedure of recording in a ledger is known as posting.

6. It may be sub-divided into General ledger, debtors/sales ledger, creditors/purchases ledger.