Tag: ledger and posting

Questions Related to ledger and posting

__________ is a summary of all transactions relating to particular account.

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

  1. Balance sheet

  2. Trial balance

  3. Ledger

  4. Journal

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Correct Option: C
Explanation:

Ledger is the principal book of accounts. Journal is kept only to facilitate for passing the entries. All entries which are passed in journal are posted in ledger. For every account , a separate ledger is opened. Ledger is a summary of all transactions relating to a particular account.

A bill given to a creditor is called bills payable.

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. True

  2. False

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Correct Option: A

The total of Bill Payable Book will always show ____________ balance.

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. Debit

  2. Credit

  3. Nil

  4. None

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Correct Option: B

_______________ is real account in nature and also an asset and will always show debit balance.

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. Bill Receivable

  2. Bill payable

  3. Debtor

  4. Creditor

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Correct Option: A

Bills Payable book is to keep a record of ____________.

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. Bills Payable to Creditors

  2. Bills Received From Supplier

  3. Credit Purchases

  4. Credit Sales

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Correct Option: A
Explanation:

There are various subsidiary journals maintained to record various transactions. This includes sales day book, purchase day book, bills receivable book, bills payable book etc. 

Bills payable book is a subsidiary book which is used to records all bills payable to creditors.

Bills Receivable book is to keep record of ___________.

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. Bills Received From Customers

  2. Bills Received From Supplier

  3. Credit Purchases

  4. Cash Sales

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Correct Option: A
Explanation:

There are various subsidiary books. Bills receivable book is also a subsidiary book which is used to records all bills received from customers.

The total of Bill receivable book will always show ________________.

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. Debit balance

  2. Credit Balance

  3. Nil Balance

  4. None

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Correct Option: A

The bank rate means ____________________________________.

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. Rate of Interest charged by commercial banks from borrowers

  2. Rate of Interest at which commercial banks discounted bills of their borrowers

  3. Rate of interest allowed by commercial banks on their deposits

  4. Rate at which RBI purchases or re-discounts bills of exchange of commercial banks

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Correct Option: D

On drawing a bill of exchange the drawer debit __________.

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. bill receivable a/c

  2. bills A/c

  3. bills payable A/c

  4. endorsee A/c

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Correct Option: A

____________ is designed as a summary of all the bills accept by the firm for which payment has to be made on specified dates of maturity in future.

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. Bill receivable book

  2. Bill Payable Book

  3. Cash Book

  4. None

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Correct Option: B