Tag: explain the meaning of ledger posting

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Multiple choice 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

Ledger posting is made before passing journal entry.

  1. True

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

Ledger posting is made after recording the journal entries in the book of original entry. Once the transactions are recorded in the journal, theses are transferred or posted to the relevant ledger accounts. 

Thus, ledger posting is done after passing the journal entry.

Multiple choice 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

All entries are posted from journal to _______.

  1. ledger

  2. balance sheet

  3. trial balance

  4. cash A/c
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The first step involves identifying the transactions to be recorded and preparing the source documents which are in turn recorded in the basic book of original entry called journal and are then posted to individual accounts in the principal book called ledger. 


The process of transferring journal entry to the individual accounts is called posting. 
This sequence causes the journal to be called the Book of Original Entry and the ledger account is the Principal Book of Entry.

Multiple choice 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

____________ is a process of transferring journal entry to ledger.

  1. Journalisation

  2. Ledger Posting

  3. Casting

  4. Recording
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

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

Multiple choice 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

Recording of a transaction in journal is called posting.

  1. True

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

Ledger posting means making entries of the transactions in the ledger books from the journals. Posting is a process of transferring debit and credit aspects of the entries appearing in the journal and other books of original entry to the debit and credit sides of the relevant accounts in the ledger. 

Posting means transferring the entries from the Journal to the Ledger accounts. Recording of a transaction in the Journal is termed as Journalising. Thus, when entries are posted or transferred to the respective ledger accounts, this process is termed as posting.

Multiple choice 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

Ledger Folio is recorded in Journal.

  1. True

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

Ledger folio is the page number or folio number that is recorded in the L.F. column in the Journal. 

This column indicates the page number of the ledger book on which the relevant account appears, It is not filled at the time of journalising but at the time of posting the transactions.

Multiple choice 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

Recording business transaction in the journal is known as posting.

  1. True

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

Journalising is the process of recording the aspects of the transactions in journal. In other words, recording of entries in the journal is known as journalising. 

The process of journalising means the steps to be followed for ascertaining the account heads to be debited/credited for a particular transaction. There are three steps involved in the process of journalising a transaction:
Step 1: Identification of accounts or 'account heads' affected by the transaction.
Step 2: Classification of accounts or account heads.
Step 3: Application of rules for debit and credit.

Multiple choice 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

With the help of journal and ledger, cross checking of business transactions not possible.

  1. True

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

The primary purpose of the ledger is to facilitate the cross-checking of business transactions through the process of balancing accounts, which is a fundamental part of accounting.

Multiple choice 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

Cash purchase of raw material is initially recorded in_________.

  1. purchase day book

  2. cash book

  3. directly in Purchase A/c

  4. any of the above three
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

All cash transactions are first recorded in cash book. Hence cash purchase of raw material is also to be recorded in cash book.

Multiple choice 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

A summary record of the changes in a particular asset, liability or owners equity is known as _________.

  1. Account

  2. Account current

  3. Proforma Account

  4. Ledger
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The detailed record of all the changes that have occurred in a particular asset, liability, or owner's equity during a period is known as account. It is a record or statement of financial expenditure and receipts relating to a particular period or purpose.

Multiple choice 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

The transferring of amount from the journal to the appropriate accounts in the ledger is called _________.

  1. Recording

  2. Journalising

  3. Journal entry

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

All journal entries must be transferred to a book to have the summary of each account. The book where these individual account are opened is called ledger. Process of transferring the entries from journal to ledger is called posting.