Distinction between Journal and Ledger :

Books of original entry (Journal) and Ledger can be distinguished as follows:

Basis of  Distinction	Journal	Ledger
1. Book	It is the book of prime entry.	It is the main book of account.
2. Stage	Recording of entries in these books is the first stage.	Recording of entries in the ledger is the second stage.
3. Process	The process of recording entries in these books is called “Journalising”.	The process of recording entries in the ledger is called “Posting”.
4. Transactions	Transactions relating to a person or property or expense are spread over.	Transactions relating to a particular account are found together on a particular page.
5. Net effect	The final position of a particular account can not be found.	The final position of a particular account can be ascertained just at a glance.
6. Next Stage	Entries are transferred to the ledger.	From the Ledger, first the Trial Balance is drawn and then final accounts are prepared.
7. Tax authorities	Do not rely upon these books	Rely on the ledger for assessment purpose.