Distinction between Journal and Ledger

S.No Journal Ledger

1 Journal is the book of first entry ( original entry) Ledger is the book of second entry

2 Journal is the book for chronological record Ledger is the book for analytical record

3 The unit of classification of data within Journal is the transaction The unit of classification of data within Ledger is the account

4 The process of recording in Journal is called Journalizing or Journalization. The process of recording in Ledger is called posting

5 Journal as a book of source entry ordinarily has greater weight as legal evidence than the Ledger.

Q. What is meant by Posting

The process of recording information from journal to ledger is called posting.

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Police junior clerk old paper 2018

Distinction between Book-keeping and Accounting

S.No Book-keeping Accounting 1 It is the recording phase of an accounting system It is the summarizing phase of an accounting system 2 It s the basis of accounting It s the basis for business language 3 Persons responsible for bookkeeping are called book-keeper Persons responsible for accounting are called accountants 4 It does not require any special skill or knowledge It requires special skill and knowledge 5 Personal judgments of the bookkeeper is not required Personal judgments of the accountant is essential 6 Financial statements are not prepared from bookkeeping records Financial statements are prepared from accounting records. 7 It does not give the complete picture of the financial condition of the business unit It gives the complete e...

Accounting Knowledge

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