Tag: explain the concept of ledger and its importance in accounting process.

Questions Related to explain the concept of ledger and its importance in accounting process.

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

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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

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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

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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

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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.

Loose-Leaf Ledgers are also known as _____________.

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

  1. Impersonal Ledgers

  2. Personal Ledgers

  3. Perpetual Ledgers

  4. None of the above

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Correct Option: C

In the Sale or Return Ledger _________________.

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

  1. All the customers are individually debited and the sale or return account is credited with the periodical total of the Sale or Return Day Book.

  2. All the customers are debited in total and the sale or return account is credited with the periodical total of the Sale or Return Day Book.

  3. All the customers are individually debited and the sale or return account is also credited with the individual total of the Sale or Return Day Book.

  4. Any one of the above

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Correct Option: A

Sale or Return Day Book and Sale or Return Ledger are known as ______________.

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

  1. Principal Books

  2. Subsidiary Books

  3. Memorandum Books

  4. None of these

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Correct Option: C

Ledger is the ______ of accounts where similar transactions relating to a particular person or property or revenue or expense are recorded. 

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

  1. Principal book

  2. Primary entry book

  3. Third entry book

  4. None of above

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Correct Option: A

_______ is the principal book of accounts where similar transactions relating to a particular person or property or revenue or expense are recorded. 

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

  1. Ledger

  2. Journal

  3. Purchases return books

  4. Sales book

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Correct Option: A