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

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

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

  2. on the credit side of&nbsp;<span>bills payable</span>&nbsp;A/c

  3. <span>Either (a) or (b)</span>

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
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.

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

  1. posting

  2. purchase

  3. balancing of an account

  4. arithmetical accuracy test
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Posting is the accounting process of transferring entries from the journal to the ledger accounts. This organizes financial data by specific accounts.

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

  1. journalising&nbsp;

  2. balancing

  3. posting

  4. casting
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Posting is the process of grouping all transactions related to a specific item into one place, which is known as an account in the ledger.

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

Posting refers to the process of transferring information from _________.

  1. journal to ledger accounts

  2. general ledger accounts to journals

  3. source documents to journals

  4. journals to source documents
Reveal answer Fill a bubble to check yourself
A Correct answer
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.

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

  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.
Reveal answer Fill a bubble to check yourself
B Correct answer
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.

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

  1. Journalising

  2. Balancing

  3. Posting

  4. Casting.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Posting is the accounting process of transferring transactions to their specific accounts in the ledger to maintain a record of changes for each item.

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

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

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

The general ledger is a collection of accounts where transactions are posted from the general journal. The journal is the chronological record, while the ledger organizes data by account.

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

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?

  1. 3/-Lakhs

  2. 6/-Lakhs

  3. 2/-Lakhs

  4. 8/-Lakhs
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Electronic ITC ledger credits can generally be used to pay tax liabilities, but interest and penalties must typically be paid in cash. Therefore, the dealer must deposit the full amount of the arrears and penalties.

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

Ledger is also called  ___________.

  1. Principal Book of Accounts

  2. Cash Books

  3. Subsidiary Books

  4. Petty Cash Book
Reveal answer Fill a bubble to check yourself
A Correct answer
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.

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

Receivables Management deals with _______________.

  1. Receipts of raw materials

  2. Debtors collection

  3. Creditors management

  4. Inventory management
Reveal answer Fill a bubble to check yourself
B Correct answer
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.