Long type questions:

  1. Mention the steps involved in balancing of ledger account
  2. What you know about balancing a ledger account?
  3. What is the difference between P&L account and trial balance?
  4. What is meant by purchase day book?
  5. What do you mean by the term Ledger posting?
  6. What importance of ledger posting lies in accounting?
  7. When the firm maintains subsidiary books and journals, then why it becomes essential to prepare ledger accounts?

Objective type questions:

  1. 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
  1. Maintaining cash book, would help business not to record
  • Sales journal (b) purchase journal (c) general journal (d) cash account in the ledger
  1. 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
  1. 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

  1. What do you mean by ‘Net Purchases’?
  2. In case of capital accounts of current year, the balance of outstanding year where it should be reflected?
  3. Is it really necessary when you maintain a cash book, to keep record in journal as well?
  4. How the accounts get closed at the end of accounting year? Mention the balance relation to Sales A/c and Purchases A/c.
  5. What is journalizing and what are the different columns involved in it?
  6. Which account includes debit balances?
  7. What is the difference between nominal and real account?

Very short questions

  1. What is the main purpose of ledger?
  2. What are the two sides of an account?
  3. What is the difference between debit and credit balance?
  4. Explain the statement “ledger is the principal book of business.”

 

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