Tag: elements of book keeping and accountancy

Questions Related to elements of book keeping and accountancy

Book of analytical record is ___________.

elements of book keeping and accountancy ledger and posting explain the concept of ledger and its importance in accounting process. introduction to ledgers ledgers

  1. Balance sheet

  2. Journal

  3. Ledger

  4. All of the above

Show answer
Correct Option: C

This is NOT the function of ledger.

elements of book keeping and accountancy ledger and posting explain the concept of ledger and its importance in accounting process. introduction to ledgers ledgers

  1. To classify all the items

  2. To put all the items at application accounts

  3. Both a & b

  4. None of the above

Show answer
Correct Option: D

The information that is not provided in the ledger is a _______________.

elements of book keeping and accountancy ledger and posting explain the concept of ledger and its importance in accounting process. introduction to ledgers ledgers

  1. Information regarding debtors

  2. Every information is provided with narration

  3. Information regarding creditors

  4. Information regarding purchases

Show answer
Correct Option: B

Function of the ledger is _____________.

elements of book keeping and accountancy ledger and posting explain the concept of ledger and its importance in accounting process. introduction to ledgers ledgers

  1. to calculate the total debit and credit of the company

  2. to prepare the summary of each account

  3. to record all the transactions in a period.

  4. All of the above

Show answer
Correct Option: B

If there is a debit balance in ledger accounts than ___________.

elements of book keeping and accountancy ledger and posting explain the concept of ledger and its importance in accounting process. introduction to ledgers ledgers

  1. debit side of an account exceeds the credit side

  2. credit side of an account exceeds the debit side

  3. total of the debit side is more

  4. both a & c

Show answer
Correct Option: A

Ledger is a book of _________.

elements of book keeping and accountancy ledger and posting explain the concept of ledger and its importance in accounting process. introduction to ledgers ledgers

  1. original entry

  2. all cash transactions

  3. secondary entry

  4. all non-cash transactions

Show answer
Correct Option: B

Cash book is a form of _____________.

elements of book keeping and accountancy ledger and posting explain the concept of ledger and its importance in accounting process. introduction to ledgers ledgers

  1. Trial balance

  2. Ledger

  3. Journal

  4. All of the above

Show answer
Correct Option: B

Ledger is an account book in which ______________.

elements of book keeping and accountancy ledger and posting explain the concept of ledger and its importance in accounting process. introduction to ledgers ledgers

  1. only real accounts are opened

  2. only real and personal accounts are opened

  3. all the real, personal and nominal accounts are opened

  4. None of the above

Show answer
Correct Option: C
Explanation:

Business transactions are first entered in Journal or Special Purpose Subsidiary Books. The next step is to transfer the entries to respective accounts in ledger. In other word, all entries recorded in journal or special purpose subsidiary books are classified and in order to ascertain the position of a particular account, all transactions relating to that particular account are collected at one place in the ledger. In short, a ledger is a book which contains all accounts of the business enterprise whether Real, Personal or Nominal. Ledger is called the "Principal Book'. It is also called the book of final entry because the transactions which are first entered in journal or subsidiary books are finally incorporated in the ledger.

When one existing company takes over the business of another company or companies, it is _____________.

elements of book keeping and accountancy introduction to book keeping and accounting meaning and classification of business transactions develop the understanding of recording of transactions in journal illustrations on journal entries

  1. Amalgamation

  2. Absorption

  3. Internal Reconstruction

  4. External Reconstruction

Show answer
Correct Option: B
Explanation:

Amalgamation means merger of two or more companies and forming of altogether a new company.

In case of absorption, the company which is taking over(buying company) remains while one is taken over(selling company) dissolves.

The debit balance of the bank account as per the cash book should be equal to the credit balance of the account of the business in the books of the bank. 

elements of book keeping and accountancy bank reconciliation statement understand the concept of bank reconciliation statemen bank balance, bank overdraft, meaning, and bank reconciliation statement accounting records

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

True. 

The debit balance of the cash book (bank column) should be equal to the credit balance in the account of the business in the books of the bank (pass book/ bank statement). This is because, pass book (bank statement) is a copy of the customer's account in the books of bank from the point of view of the bank. So our debit balance is shown as credit balance by them.