Tag: ledger and posting

Questions Related to ledger and posting

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

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

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

  2. on the credit side of bills payable A/c

  3. Either (a) or (b)

  4. None of the above

Show answer
Correct Option: B
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.

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

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

  1. posting

  2. purchase

  3. balancing of an account

  4. arithmetical accuracy test

Show answer
Correct Option: A

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

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

  1. journalising 

  2. balancing

  3. posting

  4. casting

Show answer
Correct Option: C

Posting refers to the process of transferring information from _________.

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

  1. journal to ledger accounts

  2. general ledger accounts to journals

  3. source documents to journals

  4. journals to source documents

Show answer
Correct Option: A
Explanation:

Posting is the process of transferring the entries from the book 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 for further accounting process. Posting from the journal is done periodically, may be, weekly or fortnightly or monthly as per the requirements and convenience of the business.

The following relate to the recording process. Which of these statements is correct_________.

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

  1. The general ledger is a chronological record, of transactions.

  2. The general ledger is posted from transactions recorded in the general journal.

  3. The trial balance provides the primary source document for recording transactions into the general journal

  4. Transposition is the transfer of information from the general journal to the general ledger.

Show answer
Correct Option: B
Explanation:

After the transactions are recorded in these journals, a summary of all the transactions is posted in each journal to the general ledger, which contains all of a company's accounts. An account is a separate, detailed record associated with a specific asset, liability, equity, revenue, or expense item.

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

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

  1. Journalising

  2. Balancing

  3. Posting

  4. Casting.

Show answer
Correct Option: C

The following relate to the recording process. Which of these statements is correct?

elements of accounts ledger and posting distinction between subsidiary books and ledger explain the meaning of ledger posting methods of posting entries

  1. The general ledger is chronological record, of transactions.

  2. The general ledger is posted from transactions recorded in the general journal

  3. The trial balance provides the primary source document for recording transactions into the journal.

  4. Transposition is the transfer of information from the general journal to the general ledger.

Show answer
Correct Option: B

Suppose One Dealer has a credit of ' 5/-Lakhs in his Electronic ITC Ledger. That dealer has an interest arrears dues of '6/-Lakhs and Penalty Dues of ' 2/-Lakhs. If so, how much, he has to deposit to settle the above interest and Penalty Dues?

elements of accounts ledger and posting distinction between subsidiary books and ledger explain the meaning of ledger posting methods of posting entries

  1. 3/-Lakhs

  2. 6/-Lakhs

  3. 2/-Lakhs

  4. 8/-Lakhs

Show answer
Correct Option: D

Ledger is also called  ___________.

elements of accounts ledger and posting distinction between subsidiary books and ledger explain the meaning of ledger posting methods of posting entries

  1. Principal Book of Accounts

  2. Cash Books

  3. Subsidiary Books

  4. Petty Cash Book

Show answer
Correct Option: A
Explanation:

Journal is called subsidiary books of account. It does not provide the summarized data. 

Hence, all entries need to be posted in ledger account. Ledger is also called as principal book of accounts as it gives the details of each account.

Receivables Management deals with _______________.

elements of accounts ledger and posting distinction between subsidiary books and ledger explain the meaning of ledger posting methods of posting entries

  1. Receipts of raw materials

  2. Debtors collection

  3. Creditors management

  4. Inventory management

Show answer
Correct Option: B
Explanation:

Receivable management is the process of making decisions relating to investment in trade debtors. Certain investment in receivables is necessary to increase the sales and the profits of the firm.