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All business transactions are recorded in the subsidiary books. If the transaction does not find a place in subsidiary books, it is recorded in the journal proper. With the help of subsidiary books and Journal, Ledger Accounts are prepared. Ledger Accounts are known as Principal books. Ledger Accounts are maintained with the help of Journal, which is of the initial record of business transactions. This is why, Journal is known as the initial book of original record. Though Journal and Ledger both keep the record of business transactions but, even then they are different from each other in the following respects:

                                                         Difference between Journal and Ledger 

Points of Difference



1. Primary record Journal is the primary record of business transactions. It is the principal book of business transactions, not primary record.
2. Information Information regarding different Accounts is shown at one place. Information regarding particular Account is shown at one place.
3. Basis Ledger Accounts are prepared taking Journal entries and subsidiary books as basis. Ledger Accounts are used as a basis for preparing Trial Balance.