Journal
This is first book in which the transactions of a business unit are recorded.
Each records in the journal book called entry.
As the journal is the first book in which entries are recorded, a journal is also known as book of original entry.
Before journal entry is passed it is necessary to decide for each transaction, what are the accounts involved. It also necessary that the accounts to be debited or credited are identified.
Ledger
It is the principal book of accounts where similar transaction relating to particular person or thing are recorded.
The journal is used to record transaction in ledger.Now a day because of computerization the ledger account is posted as and when journal passed.
This is first book in which the transactions of a business unit are recorded.
Each records in the journal book called entry.
As the journal is the first book in which entries are recorded, a journal is also known as book of original entry.
Before journal entry is passed it is necessary to decide for each transaction, what are the accounts involved. It also necessary that the accounts to be debited or credited are identified.
Ledger
It is the principal book of accounts where similar transaction relating to particular person or thing are recorded.
The journal is used to record transaction in ledger.Now a day because of computerization the ledger account is posted as and when journal passed.
