Tag: meaning and importance of ledger

Questions Related to meaning and importance of ledger

Bought ledger adjustment account is also termed as _______________.

elements of accounts ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

  1. General ledger Account.

  2. Creditors ledger adjustment Account.

  3. Debtors ledger adjustment Account.

  4. Sold ledger adjustment Account.

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Correct Option: B
Explanation:

Creditors or Purchases or Bought Ledger: It contains personal accounts of trade creditors from whom goods are purchased on credit.

Debtors and Creditors Ledgers are known as __________________.

elements of accounts ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

  1. Bought ledger adjustment Account.

  2. Subsidiary Ledgers.

  3. General Ledgers.

  4. Sold ledgers adjustment Account.

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Correct Option: B

Interest A/c will have ________.

elements of accounts ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

  1. Debit balance

  2. Credit balance

  3. Nil

  4. Debit or credit balance

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Correct Option: D
Explanation:

Interest may have both the accounting treatment. If interest is received , its an income to the business and if interest is paid, its an expenses for the business. 

Hence, interest account may have debit or credit balance.

Commission A/c will have __________.

elements of accounts ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

  1. Debit balance

  2. Credit balance

  3. Nil

  4. Debit or credit balance

Show answer
Correct Option: D
Explanation:

Commission may have both the accounting treatment. 

If commission is received ,its an income to the business and if commission is paid, its an expenses for the business. 
Hence, commission account may have debit or credit balance.

Expenses A/c will always have _______.

elements of accounts ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

  1. debit balance

  2. credit balance

  3. nil

  4. debit or credit balance

Show answer
Correct Option: A