Tag: explain the concept of ledger and its importance in accounting process.

Questions Related to explain the concept of ledger and its importance in accounting process.

Ledger is book for _________________.

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. Analytical record

  2. Chronological record

  3. Alphabetical record

  4. None of above

Show answer
Correct Option: A

On 1st April, 2012 in Sethi's Ledger, furniture account showed a balance of Rs. 2,00,000. On 1st October, 2012 Sethi purchased new furniture by paying Rs. 5,000 and giving old furniture whose book value on 1st April, 2012 was Rs. 12,000 to the seller. Sethi provides depreciation on furniture @ 10% per annum on diminishing balance method. The net value of furniture in Sethi's books as on 31st March, 2013 would be:

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. Rs. 1,85,080

  2. Rs. 1,83,960

  3. Rs. 1,84,780

  4. Rs. 2,04,400

Show answer
Correct Option: C
Explanation:

Cost of new asset purchased
Cash paid $ = 5,000$
Old asset given up $ = 11,400$
(12,000-600) $= 16,400$

Depreciation
(i) $ (2,00,000 - 12,0(0) \times$  10% = 18,800
(ii) 16,400 x 10% x 6/12 = 820
(iii) $18800 + 820$  = 19,620

Balance as per furniture A/c - 2,00,000
Cost of new asset purchased -5,000
Less: depreciation $=$ 19,620
Less: depreciation $=$ 600
12000 x 10% x 6/12
Net value of furniture  $ = $ 184780

A ledger is made _____________.

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. to classify all items appearing in Journal

  2. to record the transaction

  3. Both (a) and (b)

  4. None of these

Show answer
Correct Option: A
Explanation:

Ledger sorts out all the entries in journal under appropriate accounts for example all transactions related to cash are put in one account.

What is NOT required for 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. Data

  2. Using 'To' and 'By'

  3. In folio column page number of journal

  4. None of the above

Show answer
Correct Option: D

Posting 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. The process of displaying results in balance sheet

  2. The process of displaying results in profit and loss account

  3. The process of recording the transactions in journal

  4. The process of recording the transactions in ledger

Show answer
Correct Option: D

Pick out the wrong one from the following statements.

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. In ledger account debit is one left hand side and credit on right hand side.

  2. Ledger takes care of only real and nominal accounts of an enterprise.

  3. Name of the account in ledger is written in the top middle of the account.

  4. Ledger account is divided into two sides.

Show answer
Correct Option: B

What is uncommon in 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. Name of the accounts used in journal are different from ledger

  2. Account which is credited in journal debited in ledger

  3. Both a & b

  4. None of the above

Show answer
Correct Option: C

Book of analytical record 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. Balance sheet

  2. Journal

  3. Ledger

  4. All of the above

Show answer
Correct Option: C

This is NOT the function of 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. To classify all the items

  2. To put all the items at application accounts

  3. Both a & b

  4. None of the above

Show answer
Correct Option: D

The information that is not provided in the ledger is a _______________.

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. Information regarding debtors

  2. Every information is provided with narration

  3. Information regarding creditors

  4. Information regarding purchases

Show answer
Correct Option: B