Sign In

For the sake of quality, our forum is currently "Restricted" to invitation-only. In case if you wish to join our forum, please send an email seeking an invitation to "[email protected]".

Forgot Password

Lost your password? Please enter your email address. You will receive a link and will create a new password via email.

Captcha Click on image to update the captcha.

You must login to ask question.

What is the Difference Between Journal and Ledger?

Difference Between Journal and Ledger

During the accounting cycle, there are two important steps to be followed; recording journal entries & preparing ledger accounts. They are related, however, there is a difference between journal and ledger which can be summarized as follows;



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 like a ledger.

5. The 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.

7. The format of a journal;

Sample format of a journal

Related Topic – What is a Compound Journal Entry?


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 for nominal accounts, all ledger accounts are balanced to find the net result.

5. The 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.

7. The format of a ledger account;

Sample format of a ledger

>Read How to Make a Trial Balance from Ledger Balances?