Account 3 Marks Question

Journal or Books of Original Entry	Ledger
All the transactions are first of all recorded in these books, i.e., journal or subridiary books such as purchase book sales books etc.	All the transactions entered in jouenal or subsidiary Books are later transferred to the ledger.

Journal Folio (J.F.) Column in the ledger records Page No. of the journal from which the posting to the Ledger has taken place. Purpose of posting J.F. numbers is that it provides a ready reference for tracing the page of journal from where the entry has been posted.

When in a Journal entry, two or more accounts are debited and only one account is credited or vice versa, the entry is termed as compound journal entry. In case of posting of a compound journal entry, posting has to be made in all the accounts whether debited or credited in the entry. For example, if on 10th April 2017, cash received from Gopal & Co. is ₹ 14,800 and discount allowed to them is ₹ 200, the compound entry and the Ledger Accounts will be as follows:

Solution is as follows.

Difference between Journal and Ledger

	Basis	Journal	Ledger
1.	Nature of Book	It is a book of primary entry.	It is a book of final entry.
2.	Basis for preparation	Primary documents (such as vouchers, receipts, etc.) are the basis for recordng transactions in the journal.	Journal is the basis for recording transactions in the ledger.
3.	.Stage of Recording	Recording in the joumal is the first stage.	Recording in the ledger is the second stage.
4.	Object	It is pepared to record all transactions in a chronologlcal order.	It is prepared to see the net effect of various transaction affecting a particular account.
5.	Format	Joumal has five columns: 1. Date. 2. Particulars. 3. Ledger Follo. 4. Debit Amount.	Ledger has four identical columns on debit and credit sides: 1. Date. 2. Particulars. 3. Journal Follio. 4. Amount.

Solution is as follows.