Ledger, Journal

Question 1

What is ledger ?

Answer 1

Main/principal book of accounts.
Entries: Travel from journal/subsidiary books.
Contents: All accounts (assets, liabilities, income, expenses, owner’s equity).
Permanent Record: Final entry location.
Systematic Posting: Transactions posted in ledger account form.
Balancing: Accounts are balanced after posting.
Balances Used For: Preparing financial statements (Profit & Loss A/c and Balance Sheet).

Question 2

Journal?

Answer 2

Book of original/prime entry.
Recording: Transactions recorded in order of occurrence (chronological order).
Process: Recording in the journal is called journalizing.
Journal Entry: Each entry made in the journal.