Tag: elements of book keeping and accountancy

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Questions Related to elements of book keeping and accountancy

Multiple choice elements of book keeping and accountancy ledger and posting distinction between subsidiary books and ledger explain the meaning of ledger posting methods of posting entries

Recording of a transaction in journal is called posting.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Ledger posting means making entries of the transactions in the ledger books from the journals. Posting is a process of transferring debit and credit aspects of the entries appearing in the journal and other books of original entry to the debit and credit sides of the relevant accounts in the ledger. 

Posting means transferring the entries from the Journal to the Ledger accounts. Recording of a transaction in the Journal is termed as Journalising. Thus, when entries are posted or transferred to the respective ledger accounts, this process is termed as posting.

Multiple choice elements of book keeping and accountancy ledger and posting distinction between subsidiary books and ledger explain the meaning of ledger posting methods of posting entries

Ledger Folio is recorded in Journal.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Ledger folio is the page number or folio number that is recorded in the L.F. column in the Journal. 

This column indicates the page number of the ledger book on which the relevant account appears, It is not filled at the time of journalising but at the time of posting the transactions.

Multiple choice elements of book keeping and accountancy ledger and posting distinction between subsidiary books and ledger explain the meaning of ledger posting methods of posting entries

Recording business transaction in the journal is known as posting.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Journalising is the process of recording the aspects of the transactions in journal. In other words, recording of entries in the journal is known as journalising. 

The process of journalising means the steps to be followed for ascertaining the account heads to be debited/credited for a particular transaction. There are three steps involved in the process of journalising a transaction:
Step 1: Identification of accounts or 'account heads' affected by the transaction.
Step 2: Classification of accounts or account heads.
Step 3: Application of rules for debit and credit.

Multiple choice elements of book keeping and accountancy ledger and posting distinction between subsidiary books and ledger explain the meaning of ledger posting methods of posting entries

With the help of journal and ledger, cross checking of business transactions not possible.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The primary purpose of the ledger is to facilitate the cross-checking of business transactions through the process of balancing accounts, which is a fundamental part of accounting.

Multiple choice elements of book keeping and accountancy ledger and posting distinction between subsidiary books and ledger explain the meaning of ledger posting methods of posting entries

Cash purchase of raw material is initially recorded in_________.

  1. purchase day book

  2. cash book

  3. directly in Purchase A/c

  4. any of the above three
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

All cash transactions are first recorded in cash book. Hence cash purchase of raw material is also to be recorded in cash book.

Multiple choice elements of book keeping and accountancy ledger and posting distinction between subsidiary books and ledger explain the meaning of ledger posting methods of posting entries

A summary record of the changes in a particular asset, liability or owners equity is known as _________.

  1. Account

  2. Account current

  3. Proforma Account

  4. Ledger
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The detailed record of all the changes that have occurred in a particular asset, liability, or owner's equity during a period is known as account. It is a record or statement of financial expenditure and receipts relating to a particular period or purpose.

Multiple choice elements of book keeping and accountancy ledger and posting distinction between subsidiary books and ledger explain the meaning of ledger posting methods of posting entries

The transferring of amount from the journal to the appropriate accounts in the ledger is called _________.

  1. Recording

  2. Journalising

  3. Journal entry

  4. Posting
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

All journal entries must be transferred to a book to have the summary of each account. The book where these individual account are opened is called ledger. Process of transferring the entries from journal to ledger is called posting.

Multiple choice elements of book keeping and accountancy ledger and posting distinction between subsidiary books and ledger explain the meaning of ledger posting methods of posting entries

Total of Bills Payable Book is posted to the ledger ___________.

  1. on the debit side of bills payable A/c

  2. on the credit side of&nbsp;<span>bills payable</span>&nbsp;A/c

  3. <span>Either (a) or (b)</span>

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The total of “Bills Payable Book” shows the total amount of bills accepted, which is posted on the Credit side of “Bills Payable Account”. Bills Payable are liability for business. Thus, show credit balance.

Multiple choice elements of book keeping and accountancy ledger and posting distinction between subsidiary books and ledger explain the meaning of ledger posting methods of posting entries

The process of transferring the debit and credit items from a journal to their respective accounts in the ledger is termed as _______________.

  1. posting

  2. purchase

  3. balancing of an account

  4. arithmetical accuracy test
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Posting is the accounting process of transferring entries from the journal to the ledger accounts. This organizes financial data by specific accounts.

Multiple choice elements of book keeping and accountancy ledger and posting distinction between subsidiary books and ledger explain the meaning of ledger posting methods of posting entries

The process of transferring the transactions relating to changes in a particular item at one place in the form of an account is called _________.

  1. journalising&nbsp;

  2. balancing

  3. posting

  4. casting
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Posting is the process of grouping all transactions related to a specific item into one place, which is known as an account in the ledger.