5/5/2023 0 Comments Debit credit t chart![]() ![]() Once the transactions are entered in the journal, then they are classified and posted into separate accounts. Ledger is a principal book which comprises a set of accounts, where the transactions are transferred from the Journal. In the case of compound entry, it should be kept in mind that the total of debit and credit will tally. Compound Entry: Entry having one debit and more than one credit or entry having more than one debit for a single debit or two or more debit and two or more credits.Single Entry: Entry having one debit and a corresponding credit.It has five columns which are Date, Particulars, Ledger Folio, Debit, and Credit. The complete process of recording the entries in the journal is known as Journalizing. It highlights the two accounts which are affected by the occurrence of the transaction, one of which is debited and the other is credited with an equal amount.Ī short note is given in support of each entry, which gives a brief description of the transaction, known as Narration. In this, the transactions are regularly recorded in an orderly manner, so that they can be referred in future. The Journal is a subsidiary day book, where monetary transactions are recorded for the first time, whenever they arise. The process of transferring entries from the journal to ledger is known as Posting. The process of recording transactions into Journal is known as Journalizing. The book which enables to transfer all the transactions into separate accounts is known as Ledger. ![]() The book in which all the transactions are recorded, as and when they arise is known as Journal. In this article, we have compiled all the important differences between Journal and Ledger in accounting, in tabular form. On the other hand, Legder, or otherwise known as principal book implies a set of accounts in which similar transactions, relating to person, asset, revenue, liability or expense are tracked. Journal is also known as book of primary entry, which records transactions in chronological order. ![]()
0 Comments
Leave a Reply. |