Question

What is the difference between a journal and a ledger? How are journals and ledgers incorporated into the accounting cycle?

Answer 1

Following are the difference between journal and a ledger--------

journal------1. journal is a book of accounting where daily records of business transaction are first recorded.

2. it is also known as a primary book of accounting.

3. it is prepared out of transaction proof.

4. A joural is not balanced.

5. the procedure of recording journal is called jouralizing.

Ledger----------

1. Ledger is an accounting term in which all similar transactions related to particular person or things are maintained in a summarize form.

2. it is also known as a principal book of accounting.

3. it is prepared withthe help of journal.

4. the procedure of recording in a ledger is known as posting.

journal and ledger incorporated into the accounting style in following manner----

1. record transaction that is journalizing.

2. post journal entries to the ledger account.

3. prepare a trail balance

4. make adjusting entries.

5. prepare a adjusted trail balance.

6. prepare the final statement.

7. journalize and post closing entries.

8. prepare after closing trail balance.