Finance Question:

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What is the difference between journal entry and ledger?

Finance Interview Question
Finance Interview Question

Answer:

A journal is also called as a book of prime entry. Transactions occurred are first entered in this book to show which accounts should be debited and which should be credited.
On the basis of entries made in the journal, accounts are prepared, the book which contains the accounts is called a ledger. transactions entered in the journal are classified according to their nature and posted in their respective accounts in ledger. it is also called as book of final entry.

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