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Differences: General Ledger & General Journal

Differences: General Ledger & General Journal

In accounting what are the differences between: General Ledger & General Journal?

Journal General and Ledger General Differences

The General Ledger is a list of the various accounts used in the accounting system. Some of the most common accounts include basic assets such as Cash, Accounts Receivable, and Plant and Equipment (P&E). Common liabilities such as Accounts Payable, Tax Payable, and Salaries Payable are also listed. Depending on the particular business, there can be all sorts of complex or unusual accounts as well. The Ledger is where all of these are defined.

The General Journal is the place where every transaction is recorded. Every transaction affects at least two accounts. For example, if a company purchases a new truck for cash, the book value of the truck is debited to a P&E asset account, and the cost is credited to the cash (asset) account.