Similarities & Differences Between Journal And Balance Sheet
1. A Journal is a Book of Original Entry and it is related to the recording phase of accounting known as Bookkeeping while Balance Sheet is the Statement of Assets , Liabilities and Equity . It shows the financial position of the business. 2. A Journal is the second step of Accounting Cycle while Balance Sheet is the 5 th Step of Accounting Cycle. 3. The Journal is reported to only internal management if there is no any circumstances arise that encourage to do so while Balance Sheet is the part of Financial Statement and it is reported to the Users of Financial Statements . So, Journal is the Book of Original Entry that records Business Transactions in support of an evidence documents i.e., Voucher or Invoice while a Balance Sheet is the Statement of Financial Position of business’s asset, liabilities and owner’s equity on a particular time. Similarities Between Journal And Balance Sheet 1. Both Journal and Balance Sheet are the s...