Tag: elements of book keeping and accountancy
Questions Related to elements of book keeping and accountancy
Left hand side of an account is ________.
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Debit side
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Credit side
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Income side
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Expenses side
Debt and credit are two important terms used in Book-keeping and Accountancy. These two terms form the very basis of recording transactions in the books of accounts.
Transferring journal entry from journal to ledger is called journalising.
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True
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False
The process of recording transaction in the book of original entry is known as Journalising. The transactions are recorded in the form of a journal entry. Recording is made following the double-entry system of accounting. Thus, it records the two-fold effect of every transaction in the process of journalising, the transaction is first analysed in order to decide the account to be debited and credited by ascertaining the rule of debit and credit. After this, entries are recorded in the books of accounts. Once the entry is recorded in books, it is further posted from the journal to the ledger accounts which is called posting of entries.
Posting implies recording of a transaction in journal.
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True
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False
Posting is when the balances in sub ledger and the general journal are shifted into the general ledger. It is not at all the recording of a transaction in journal.
Brokerage paid on sale of goods is debited to Brokerage A/c.
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True
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False
Brokerage is a fee or commission paid to a broker who is engaged in business in buying or selling shares and securities.
The accounting entries passed to transfer balance from the closed account to another account are called transfer entries, e.g. transfer of net profit to Capital A/c.
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True
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False
Transfer entries, are entries intended to transfer an item from one head of account to another.
Right hand side of an account is __________.
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credit side
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debit side
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income side
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expenses side
All the accounts identified on the basis of transactions recorded in different journals/books such as Cash Book, Purchase Book, Sales Book etc. will be opened and maintained in a separate book called Ledger. So a ledger book; in which all types of accounts relating to assets, liabilities, capital, expenses and revenues are maintained. It is a complete set of accounts of a business enterprise.
Recording of an entry from journal to ledger is called as __________.
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Balancing
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Posting
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Totalling
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Transferring
The process of recording transactions in the journal is called Journalizing. Once journalizing process is completed, the journal entry provides a complete and useful description of the event's effect on the organisation.
Ledger posting is made before passing journal entry.
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True
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False
Ledger posting is made after recording the journal entries in the book of original entry. Once the transactions are recorded in the journal, theses are transferred or posted to the relevant ledger accounts.
All entries are posted from journal to _______.
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ledger
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balance sheet
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trial balance
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cash A/c
The first step involves identifying the transactions to be recorded and preparing the source documents which are in turn recorded in the basic book of original entry called journal and are then posted to individual accounts in the principal book called ledger.
____________ is a process of transferring journal entry to ledger.
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Journalisation
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Ledger Posting
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Casting
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Recording
Posting is the process of transferring the entries from the books of original entry (journal) to the ledger. In other words, posting means grouping of all the transactions in respect to a particular account at one place for meaningful conclusion and to further the accounting process. Positing from the journal is done periodically, may be, weekly or fortnightly or monthly as per the requirements and convenience of the business.