Journal and Ledger

Journal and ledger are the two important books of accounts used in accounting. A journal records all the transactions in a chronological order while a ledger groups and records the transactions based on the type of account. The following are the differences between a journal and a ledger:

Journal:

- Records all transactions in a chronological order
- Provides a complete record of all transactions
- Provides the source document for posting to the ledger
- Does not give the balance of an account
- The transactions are recorded in a journal entry

Ledger:

- Records transactions based on the type of account
- Provides the balance of an account
- Provides a summary of the transactions
- Transactions are recorded in a ledger account

Trial Balance

A trial balance is a statement that lists all the balances of the accounts in the ledger. It is prepared to ensure that the total debits are equal to the total credits. The following are the features of a trial balance:

- Prepared at the end of the accounting period
- Lists all the accounts in the ledger
- Provides the balance of each account
- Total debits should be equal to total credits
- Helps to detect errors in the ledger

Balance Sheet

A balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time. It shows the assets, liabilities, and equity of a company. The following are the features of a balance sheet:

- Prepared at the end of the accounting period
- Provides a snapshot of a company's financial position
- Shows the assets, liabilities, and equity of a company
- Assets must equal liabilities and equity
- Helps to evaluate the financial health of a company

In conclusion, journal and ledger are used to record transactions while trial balance and balance sheet are used to check the accuracy of the accounts and to show the financial position of a company.

1)what trial balance shows?
2)what is journal ? why it is necessary to maintain in business?
3)why both side of liability and assets of balance sheet are equal