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.

Which is recorded in the purchases ledger?

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

  1. Cash paid to a creditor

  2. Cash purchases

  3. Cheque received from a debtor

  4. Purchase of fixed assets

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Correct Option: A

Which ONE of the following, in a classified form, contains permanent records of all transactions?

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

  1. Cash Book

  2. Sales Day Book

  3. Journal

  4. Ledger

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Correct Option: D

Which of the following is not a book of prime entry?

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

  1. Cash book

  2. Returns Inwards Day Book

  3. The Petty Cash Book

  4. The Ledger

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Correct Option: D

Ledger is book for _____________.

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

  1. Analytical record

  2. Chronological record

  3. Alphabetical record

  4. None of above

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Correct Option: B
Explanation:

A ledger is an accounting book that facilitates the transfer of all journal entries in a chronological sequence to individual accounts. The process of recording journal entries into the ledger is called posting.

Process of recording transaction in ledger is known as ____________.

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

  1. Balancing

  2. Posting

  3. Journalizing

  4. None of above

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Correct Option: B