The difference between the two
A journal is a book where you record each business transaction shown on your supporting documents. You may have to keep separate journals for transactions that occur frequently.
A ledger is a book that contains the totals from all of your journals. It is organized into different accounts. Whether you keep journals and ledgers and how you keep them depends on what kind of business you are in.
Small Business Ledgers
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Business checkbook (Keep a second checkbook for business and make sure to write the year on the top of each page) |
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Daily summary of cash receipts |
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Monthly summary of cash receipts |
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Check disbursement journal |
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Depreciation worksheet |