Difference between journal and ledger

Business organisations such as sole proprietors, firms and companies maintain books of accounts to record their business transactions. Double entry system of accounting follows certain standard books of accounts for recording business transactions. These begin with preparation of chart of accounts to preparation of journal, posting to ledger accounts and compiling of trial balance. These … Read moreDifference between journal and ledger

Difference between internal transaction and external transaction

Every business encounters and accounts for a plethora of transactions while undertaking its operations. Any business event which impacts the finances of the business would constitute a transaction. Business transactions can be categorized into several types. Categorization helps determine the accounting treatment to be given to each transaction. This article looks at meaning of and … Read moreDifference between internal transaction and external transaction

Difference between accounting and bookkeeping

Definitions and meanings: Accounting: Accounting is the systematic approach thorough which businesses record, summarize analyze, interpret and report financial transactions and data of a business. This also follows the process of controlling, planning and making informed and well calculated decisions based upon the accounting information. Bookkeeping: Bookkeeping is referred to the recording of financial transactions … Read moreDifference between accounting and bookkeeping