- Is the book of prime entry.
- As soon as transaction originates it is recorded in journal.
- Transactions are recorded in order of occurrence.
- Narration is written for each entry.
- Ledger folio is written.
- Is the book of final entry.
- Transactions are posted in the ledger after the same have been recorded in the journal.
- Transactions are classified according to the nature and are grouped in the concerned accounts.
- Narration is not required.
- Folio of the journal or sub-journal is written.