Expert Tutors
Long type questions:
- Mention the steps involved in balancing of ledger account
- What you know about balancing a ledger account?
- What is the difference between P&L account and trial balance?
- What is meant by purchase day book?
- What do you mean by the term Ledger posting?
- What importance of ledger posting lies in accounting?
- When the firm maintains subsidiary books and journals, then why it becomes essential to prepare ledger accounts?
Objective type questions:
- Posting need to be made at which side of account that appears at debit side of cash book
- Debit (b) credit (c) either debit or credit (d) neither debit nor credit
- Maintaining cash book, would help business not to record
- Sales journal (b) purchase journal (c) general journal (d) cash account in the ledger
- Balancing of account refers to:
- Total of debit side (b) total of credit side (c) difference in total of debit and credit (d) none of these
- What is mentioned in the both side of an account
- Debit and credit (b) profit and loss (c) none of these
Ans: 1 (b) 2 (d) 3 (c) 4. (a)
Mention true and false of the following statements
- An account is said to have formal record in change of items of similar nature
- Posting is done at debit side of account that is credited in Journal entry
- Cash account should not be prepared in case cash book is maintained
- Writing transaction in ledger is called balancing
- When it comes to credit side of cash book, posting needs to be done in debit side
- While a particular account is made, there is no use to name same account whether it can be debit or credit side
- Process involved in transferring entries from books of original entry to ledger is said to be journalizing
Ans: (1) True (2) False (3) True (4) False (5) True (6) True (7) False
Short type questions
- What do you mean by ‘Net Purchases’?
- In case of capital accounts of current year, the balance of outstanding year where it should be reflected?
- Is it really necessary when you maintain a cash book, to keep record in journal as well?
- How the accounts get closed at the end of accounting year? Mention the balance relation to Sales A/c and Purchases A/c.
- What is journalizing and what are the different columns involved in it?
- Which account includes debit balances?
- What is the difference between nominal and real account?
Very short questions
- What is the main purpose of ledger?
- What are the two sides of an account?
- What is the difference between debit and credit balance?
- Explain the statement “ledger is the principal book of business.”
Links of Previous Main Topic:-
- Book keeping
- Meaning of gaap
- Origin of transaction
- The concept of debit and credit
- Subsidiary books or sub division of journal
Links of Next Accounting Topics:-
- Meaning of trial balance
- Balance sheet in final accounts without adjustments
- Adjustments additional information in preparation of final accounts
- Meaning of bank reconciliation statements
- Bills of exchange concept of bills of exchange
- Errors affecting or disclosed by trial balance introducing the concept
- Meaning of depreciation
