Difference between Journal and Ledger

Basis	Journal	Ledger
Function	Records transactions chronologically as they occur.	Summarizes transactions by account, providing a running balance for each.
Recording	Records original entries of transactions.	Posts summarized transactions from the journal to individual accounts.
Format	Typically in a columnar format with columns for date, description, debit, and credit.	Organized into separate accounts, each with its own page or section.
Chronology	Entries are recorded in chronological order.	Entries are grouped by account rather than chronological order.
Detail Level	Provides detailed information about each transaction.	Summarizes transactions by account, showing balances.
Recording Period	Records transactions as they occur, regardless of accounting period.	Summarizes transactions for specific accounting periods, such as monthly or annually.
Primary Purpose	Initial recording of transactions, ensuring accuracy and completeness.	Provides a summarized view of all transactions, facilitating analysis and reporting.

Difference between Journal and Ledger

Journal and Ledger are two main aspects of accounting when it comes to recording of transactions. There exist many differences between journals and ledgers, which are covered in this article. A journal records transactions chronologically as they occur, while a ledger summarizes and organizes these transactions by account.