What is the difference between a journal entry and a ledger entry?

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by olen , in category: Taxation and Accounting , 9 months ago

What is the difference between a journal entry and a ledger entry?

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1 answer

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by sibyl , 9 months ago

@olen 

A journal entry is the first step in the accounting cycle, and it is used to record individual transactions or events in chronological order. It provides a detailed account of the transaction, including the accounts involved, the amounts debited or credited, and any additional details or explanations.


On the other hand, a ledger entry is a record of the transaction that is posted or transferred from the journal to the general ledger. The general ledger is a master record that organizes and summarizes all of a company's transactions into specific accounts. Each transaction recorded in the journal is assigned to the respective accounts in the general ledger.


In summary, a journal entry is the initial record of a transaction, while a ledger entry is the subsequent posting of that transaction to the general ledger.