Tag: ledger and posting

Questions Related to ledger and posting

Bills payable book is a ____________.

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. subsidiary book

  2. principal book

  3. ledger

  4. memorandum book

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Correct Option: A
Explanation:

There are various subsidiary books which are used to record the specific transaction pertaining to the specific activity. 

Credit sales are recorded in sales book while bills payable are recorded in bills payable book which is a subsidiary book.

Discount at the time of retirement of a Bill is a gain for the drawer.

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: B

On receipt of promissory note, the payee records in ______.

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 Receivable Book.

  2. Bills payable Book.

  3. Journal Proper.

  4. None of the above.

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Correct Option: A

A bill given to a creditor is called Bills Receivable.

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: B

It is a check on the accuracy of posting. If the trial balance agrees it proves that - 
1. The books are arithmetically accurate 
2. Both the aspects of the transactions have correctly recorded in the books of original entry as well as in the ledger. 
The correct answer is ___________________.

elements of book keeping and accountancy ledger and posting explain the concept of ledger and its importance in accounting process. introduction to ledgers ledgers

  1. $1$ but not $2$

  2. $2$ but not $1$

  3. Both $1$ & $2$

  4. Either $1$ or $2$

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Correct Option: C

Which of the following involves the preparation of reports and statements from the classified data (ledger) understandable and useful to management and other interested parties? 

elements of book keeping and accountancy ledger and posting explain the concept of ledger and its importance in accounting process. introduction to ledgers ledgers

  1. Classifying

  2. Recording

  3. Summarizing

  4. All of the above

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Correct Option: C

Ledger book is popularly known as ____________.

elements of book keeping and accountancy ledger and posting explain the concept of ledger and its importance in accounting process. introduction to ledgers ledgers

  1. Secondary book of accounts

  2. Principal book of accounts

  3. Subsidiary book of accounts

  4. None of above

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Correct Option: B

At the end of the accounting year all the nominal accounts of the ledger book are ______________________.

elements of book keeping and accountancy ledger and posting explain the concept of ledger and its importance in accounting process. introduction to ledgers ledgers

  1. Balanced but not transferred to profit and loss account .

  2. Not balanced and also the balance is not transferred to the profit and loss account.

  3. Balanced and the balance is transferred to the balance sheet.

  4. Not balanced and their balance is transferred to the profit and loss account.

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Correct Option: D

The total of the amount of the bills receivable book is posted to the _______in the ledger. 

elements of book keeping and accountancy ledger and posting explain the concept of ledger and its importance in accounting process. introduction to ledgers ledgers

  1. Dr. of bills payable account

  2. Cr. of bills payable account

  3. Cr. of bills receivable account

  4. Dr. of bills receivable account

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Correct Option: C

The total of the amount of the bills payable book is posted to the _____ in the ledger.

elements of book keeping and accountancy ledger and posting explain the concept of ledger and its importance in accounting process. introduction to ledgers ledgers

  1. Dr. of bills payable account

  2. Cr. of bills payable account

  3. Cr. of bills receivable account

  4. Dr. of bills receivable account

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Correct Option: B