Distinguish between journal and ledger.
|1. Recording||As and when transactions take place entries are made in the journal.||In a ledger, entries may be posted either on the same day or at the end of a specified period such as weekly or fortnightly especially when subsidiary books are maintained.|
|2. Stage of recording||Recording in the journal is the first stage.||Recording in the ledger is the second stage, which is done on the basis of entries made in the journal.|
|3. Order of recording||Entries are made in chronological order, i.e., date wise in the order of occurrence.||Entries are made account wise.|
|4. Process||The process of recording in the journal is called journalising.||The process of recording in the ledger is called posting.|
|5. Facilitating preparation of trial balance||Amount from the journal does not serve as the basis for preparing a trial balance.||Ledger balance serves as the basis for preparing trial balance.|
|6. Basis of entries||Entries in the journal are made on the basis of source documents.||Posting is done in the ledger on the basis of journal entries.|
|7. Net position||Net position of an account cannot be ascertained from the journal.||Net position of an account can be ascertained from the ledger account.|
Concept: Distinction Between Journal and Ledger
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