Journals or day books and ledger are the most important books of the accounting entry systems. Following are the relationship between the ledger and the journals:-
- Journals are the primary books of the entry and the ledger is the book of second entry.
- The entries relating to various accounts are recorded in journals date wise while the entries relating to particulars accounts are summarized in to ledger.
- The Vouchers are basic source for entries in journals while the journals are basic source for entries in ledger.
- The unit of classification in journal is the transaction while the unit of classification in ledger is account.
- The process of recording into journals is called journalizing while the process of recording the transactions into ledger is called posting.
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