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Journal
1. Journal is a book of accounting where daily records of business transactions are first recorded in a chronological order i.e. in the order of dates.
2. It is known as the primary book of accounting or the book of original/first entry.
3. It is prepared out of transaction proofs such as vouchers, receipts, bills, etc.
4. A journal is not balanced.
5. Procedure of recording in a journal is known as journalizing, which performed in the form of a Journal Entry.
6. It may be subdivided into a cash book, a sales day book, sales return day book, purchases day book, purchases return day book, B/R Book, B/P Book, Petty Cash Book.
Ledger
1. A ledger is an accounting book in which all similar transactions related to a particular person or thing are maintained in a summarized form.
2. It is known as the principal book of accounting or the book of final entry.
3. It is prepared with the help of a journal itself; therefore, it is the immediate step after recording a journal.
4. Except nominal accounts all ledger accounts are balanced to find the net result.
5. Procedure of recording in a ledger is known as posting.
6. It may be sub-divided into General ledger, debtors/sales ledger, and creditors/purchases ledger.
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