In the journal, the transactions are recorded sequentially. Conversely, in the ledger, the transactions are recorded on the basis of accounts. Debit and Credit are columns in the journal, but in the ledger, they are two opposite sides. In the journal, narration must be written to support the entry.

In bookkeeping and accounting, a ledger is a book (or record) for collecting historical transaction data from a journal and organizing entries by account. The ledger provides the transaction history and current balance in each accounting system account, throughout the accounting period.

Journal and ledger are two important books of accounts used in accounting to record and keep track of financial transactions. While both books serve the same purpose, they differ in terms of the order in which transactions are recorded.

Journal:
The journal is the first book of entry where financial transactions are recorded in a chronological order, meaning they are recorded as they occur. Each transaction is recorded separately in the journal and includes information such as the date, description of the transaction, and the amounts involved. The journal serves as a primary record of the transactions and provides a complete history of all the financial activities of a business.

Ledger:
The ledger is the second book of entry where transactions recorded in the journal are further classified and summarized. Unlike the journal, the ledger organizes transactions in an analytical order, grouping them by accounts. Each account in the ledger represents a specific asset, liability, equity, revenue, or expense. The ledger provides a detailed account balance for each account, allowing for easy reference and analysis of individual accounts.

Explanation of the Correct Answer:
The correct answer is option 'A', which states that the journal records transactions in a chronological order, while the ledger records transactions in an analytical order.

Chronological Order:
The journal records transactions in the order they occur, ensuring that the sequence of events is maintained. By recording transactions chronologically, it becomes easier to trace back and verify the accuracy of the recorded transactions. This chronological order helps in providing a clear and complete record of all financial activities.

Analytical Order:
On the other hand, the ledger arranges transactions in an analytical order by grouping them according to accounts. This allows for a systematic and organized presentation of financial information, making it easier to analyze and interpret the data. The analytical order in the ledger provides a summary of transactions for each account, giving a clear picture of the account balances and facilitating the preparation of financial statements.

Conclusion:
In conclusion, the journal and ledger play different roles in the accounting process. The journal records transactions in a chronological order, while the ledger organizes and summarizes these transactions in an analytical order. Both books are essential for maintaining accurate financial records and providing a comprehensive view of a business's financial activities.