Tag: ledger and posting

Questions Related to ledger and posting

Ledger book is popularly known as ______________.

elements of accounts ledger and posting three column cash book three columnar cash book triple column cash book

  1. Secondary book of accounts

  2. Principal book of accounts

  3. Subsidiary book of accounts

  4. None of these

Show answer
Correct Option: B

Narration is not necessary in ledger.

elements of accounts ledger and posting three column cash book three columnar cash book triple column cash book

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

Narration 

A short explanation of each transaction is written under each entry which is called narration. 

Narration is not required in ledger, whereas it is required in a Journal. 
It is the brief explanation that provides the details of Journal entry and helps understand the account debited or credited. Journal entries are posted to the ledger accounts. 
Thus,narration is not necessary in ledger.

Balance of petty cash book is posted to ledger ______________.

elements of accounts ledger and posting three column cash book three columnar cash book triple column cash book

  1. In the cash account

  2. In the bank A/c

  3. Nowhere

  4. Either (a) or (b).

Show answer
Correct Option: C
Explanation:

A petty cash book is a ledger kept with the petty cash fund to record amounts that are added to or subtracted from its balance. Petty cash should be part of an overall business accounting system that documents how your business moves funds between one account and another and how it spends its money.

In the absence of proper agreement, representative of the deceased partner is entitled to the Dead partner's share in the following items _______. 

elements of accounts ledger and posting three column cash book three columnar cash book triple column cash book

  1. profits till date, goodwill, joint life policy, interest on capital, share in revalued assets and liabilities.

  2. capital, goodwill, joint life policy, interest on capital, share in revalued assets and liabilities.

  3. capital, profits till date, goodwill, interest on capital, share in revalued assets and liabilities.

  4. capital, profits till date, goodwill, joint life policy, share in revalued assets and liabilities.

Show answer
Correct Option: D

Prepaid Salary Account is _____________.

elements of book keeping and accountancy 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. An Asset Account

  2. A Liability Account

  3. A Revenue Account

  4. An Expense Account

Show answer
Correct Option: A

Which of the following is (are) benefits of subsidiary ledger accounts to business?

elements of book keeping and accountancy 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. It tells about customer attitude of payments

  2. It can be checked against the control account to pick up recording errors

  3. It tells about the complete history of transactions of business client

  4. All of the above

Show answer
Correct Option: D

Outstanding Salary Account is ______________.

elements of book keeping and accountancy 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. An Asset Account

  2. A Liability Account

  3. A Revenue Account

  4. An Expenses Account

Show answer
Correct Option: B

Interest Received Account is ________________.

elements of book keeping and accountancy 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. An Asset Account

  2. A Liability Account

  3. A Revenue Account

  4. An Expense Account

Show answer
Correct Option: C

Which of the following is an item of a creditors control account?

elements of book keeping and accountancy 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. Cash purchases

  2. Cash sales

  3. Credit sales

  4. Credit purchase

Show answer
Correct Option: A

Which of the following is (are) benefit/s of subsidiary ledger accounts to business?

elements of book keeping and accountancy 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. It tells about customer attitude of payments

  2. It can be checked against the control account to pick up recoding errors

  3. It tells about the complete history of transactions of business client

  4. All of the given options

Show answer
Correct Option: D