Difference between Journal and Ledger

The distinction between Journal and Ledger may be stated as under the following basis:

(1) Stage of entry : Journal is a book of primary entry. Ledger is a book of final entry.

(2) Timing of recording : As soon as the transaction originates, it is recorded in journal. The transaction are posted in the ledger after the same have been recorded in the journal.

(3) Occurrence Vs. Classification : Transactions are recorded in order of occurrence i.e. strictly in order of date. Transaction are classified according to the  nature and are grouped in the concerned accounts.

(4) Narration : Narration is written for each transaction in journal. In ledger narration is not required.

(5) Folio : Ledger Folio is written in the journal. Folio of journal or sub-journal is written in the ledger.

(6) Quick information: In journal relevant information cannot be ascertained readily e.g. cash in hand cannot be found out easily. In ledger, since transactions of particular nature are grouped at one place, therefore, relevant information can be ascertain easily.

(7) Final Accounts : Final accounts cannot be prepared from journal. Ledger is the basis of preparing final accounts.

(8) Columns Vs Sides : Journal had two columns one for debit amount and another for credit amount. Ledger has two sides left side is debit side and right side is credit side.

(9) Balancing : Journal is not balanced but totalled at the end of each page. Every account in the ledger is balanced at an appropriate time.

(10) Avoidance : with the machanism of accounting, journal may not be used for routine transaction like receipts, purchases, sales etc.  Ledger cannot be avoided. However, it may be loose leaf ledger. But ledger is a must.