Difference between Journal and Ledger [Notes with PDF]

In this article, we will learn in-depth about the difference between journal and ledger, and much more.

What is the Difference between Journal and Ledger?

The two important steps in the accounting cycle are Accounting Journal and Ledger. The position of the Ledger account is only after the Journal account in the accounting cycle. 

Although Journal and Ledger remained apart, there is a difference between Journal and Ledger.

The differences between Ledger and Journal are as follows:

SN.Point of DifferenceJournalLedger
1.DefinitionAs soon as the transaction takes place, it is recorded in the journal by the double-entry accounting system on the order of the date.The book, which is permanently recorded under the separate title of the account after the transactions recorded in the Journal book is called the Ledger.
2.Nature Journal is the primary book of accounts.Ledger is the main book of accounts.
3.Book of AccountsJournal is the assistant book of accounts.Ledger is called the king of all books of accounts.
4.PurposeThe main purpose of the Journal is to help prepare the Ledger properly.Ledger’s work can be performed efficiently without recording in the Journal.
5.PreparationJournal is prepared based on documents.Ledgers are written on the basis of the Journal.
6.No of ColumnJournal has 5 (five) columns.There are a total of 8 (eight) Columns in Ledger.
7.Mathematical AccuracyTrail Balance cannot be created to check the mathematical accuracy of accounts with a Journal.With the help of Ledger, a Trial Balance may be prepared to check the mathematical accuracy of the calculations.
8.InformationThere is no actual information available from the Journal on a specific category of transactions.All information required for specific accounts is readily available from a Ledger.
9.Financial StatementFinancial statements can not be prepared directly from the Journal.Financial statements can be prepared directly from the Ledger.

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