Tag: ledger and posting

Quizzes (17) Questions (199)

Questions Related to ledger and posting

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

Ledger book is popularly known as ______________.

  1. Secondary book of accounts

  2. Principal book of accounts

  3. Subsidiary book of accounts

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

The ledger is referred to as the principal book of accounts because it contains all the accounts (real, personal, and nominal) where transactions from the journal are summarized.

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

Narration is not necessary in ledger.

  1. True

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

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

Balance of petty cash book is posted to ledger ______________.

  1. In the cash account

  2. In the bank A/c

  3. Nowhere

  4. Either (a) or (b).
Reveal answer Fill a bubble to check yourself
C Correct answer
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.

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

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

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

In the absence of a specific agreement, the representative of a deceased partner is entitled to the capital balance, share of profits up to the date of death, share of goodwill, share in the joint life policy, and share in revalued assets and liabilities.

Multiple choice 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

Prepaid Salary Account is _____________.

  1. An Asset Account

  2. A Liability Account

  3. A Revenue Account

  4. An Expense Account
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A prepaid salary is an amount paid in advance for services not yet received. According to accounting principles, it represents a future economic benefit to the business, classifying it as an asset.

Multiple choice 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

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

  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
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Subsidiary ledgers provide detailed information about individual accounts (like specific customers or suppliers), which helps in tracking payment history, identifying recording errors by reconciling with control accounts, and managing client relationships.

Multiple choice 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

Outstanding Salary Account is ______________.

  1. An Asset Account

  2. A Liability Account

  3. A Revenue Account

  4. An Expenses Account
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

An outstanding salary is an amount owed to employees for services already rendered but not yet paid. This represents a financial obligation of the business, making it a liability.

Multiple choice 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

Interest Received Account is ________________.

  1. An Asset Account

  2. A Liability Account

  3. A Revenue Account

  4. An Expense Account
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Interest received is income earned by the business, which classifies it as a revenue account. It increases the equity of the business.

Multiple choice 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

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

  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
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Subsidiary ledgers provide detailed customer payment history showing payment patterns and attitudes, maintain complete transaction records for each client, and allow verification against control accounts to identify recording errors. All three benefits listed are genuine advantages of maintaining subsidiary ledgers. The comprehensive nature of these benefits means the correct answer must encompass all the listed functions.