Asked by Stacey Nolasco on Jul 27, 2024

verifed

Verified

Describe the difference in information contained in the general journal vs. the general ledger.

General Journal

A basic accounting ledger used to record all the financial transactions of a business.

General Ledger

A complete record of a company's financial transactions over the lifespan of the organization, serving as the foundation of its financial reporting.

  • Differentiate between the general journal and general ledger in terms of information content.
verifed

Verified Answer

JJ
Juan José Guerrero BoteroJul 30, 2024
Final Answer :
The general journal provides a listing of day-to-day transactions listed in chronological order. It displays the date, titles of the account(s) that are debited, titles of account(s) that are credited, the respective amounts of those debits and credits and the explanation of the transaction. It also includes the post reference column so that you can verify that the transaction was posted to the ledger.
The general ledger is a complete "book" of all accounts used by the company. The ledger account keeps a running balance of each specific account based on the transactions posted. It displays the date of transactions and amount of transaction. It also includes the post reference column which shows the journal and page number where the entry is journalized.