Transactions entered in the journal are classified according to their nature and posted in their respective accounts in ledger.

Journal Entry:- It is a process of recording the business transactions in journal which is known as a journalising .To divide business transactions into two aspects and recording it in the journal is called ‘journal entry’.The first aspect is Debit second aspect is Credit.

Ledger:– Ledger is prepared with the help of journal entries. Ledger is a set of accounts.It contains all accounts of the business enterprise whether real,nominal,personal.