What is difference between general journal and general ledger?

The major differences between general journal and general ledger are as follows −

General journal

  • All financial transactions are recorded.

  • Subsidiary book.

  • The primary step to record before ledger.

  • The process of recording transactions are called journalizing.

  • Narration is compulsory.

  • No need of balancing.

  • It has simple format.

  • Recorded as per transaction date.

  • Debit and credit recorded in column-wise.

  • Follow concept of duality.

General ledger

  • All financial transactions are recorded in the respective accounts.

  • Principal book.

  • Second step and created from general journal.

  • Process of transferring the entries is called posting.

  • Narration is not compulsory.

  • Require balances.

  • T- Format.

  • Entries recorded account wise.

  • Debit and credit are recorded at different sides.

  • Follows concept of duality.