Page 3 - Lesson Note

left and four in right.

6. Journal helps in preparing ledger The object of the ledger is to know
accounts correctly. income and expenditures of different
heads.
7. The total results of transactions Results of the particular head of

cannot be known from the journal. accounts can be known from the
ledger.
8. In journal ledger folio (L.F.) is written. In ledger journal folio (J.F.) is written.

9. Preparation of trial balance is not The trial balance is prepared from the
possible from the journal. ledger.

10. The balance sheet cannot be The balance sheet is prepared with the
prepared directly from the journal. help of ledger balances.

11. Transactions are recorded in the Journal is the source of preparation of
journal in the light of voucher. ledger.

12. Recording of the transaction in the Recording of transactions in the ledger
journal is called journalizing. is called posting.

13. There is no scope of balancing in Balances are drawn in ledger accounts.
Journal.

Ledger Posting

 After the transactions are recorded in the journal, it is then posted in the

principal book called as ‘Ledger’.

 The process of transferring the entries from journal to respective ledger

accounts is called ledger posting.