Chapter 4: Ledger
Answer in one sentence only
What is Ledger?
SOLUTION:
The ledger is the principle book of records and contains all the accounts of a business firm arranged in an orderly manner.
What is Ledger Posting?
SOLUTION:
The process of transferring entries from the books of original entries (Journal or subsidiary books) into respective account in the ledger is known as Ledger Posting.
When does an account show a nil balance?
SOLUTION:
When the total of debit side of amounts and credit side of amounts of an account are equal, we can say that account shows a nil balance.
What is Folio?
SOLUTION:
Folio means page number.
Where is the statement form of ledger A/c is used in actual practice?
SOLUTION:
While preparing pass book, bank uses the statement form of ledger A/C in actual practice.
Why Proprietor’s Capital Account is a liability for the business?
SOLUTION:
Amount invested by proprietor in the business is supposed to be returned by business in its life span, therefore it is known as liability for the business.
Why Proprietor’s Capital Account is a liability for the business?
SOLUTION:
Business can’t spend more cash amount than the cash amount business has. Therefore, cash account never shows a credit balance.
What is Trial Balance?
SOLUTION:
A trial balance is a list of balances of all ledger accounts as on specific date showing debit or credit balances of an account in the ledger.
Write the word, term, phrase, which can substitute the statement.
Principal Book of accounts.
SOLUTION:
Ledger
Transferring a journal entry to the appropriate accounts in the ledger.
SOLUTION:
Posting
Page number of the Ledger to which an entry is posted.
SOLUTION:
Ledger folio
The process of extracting the balance and inserting it on lesser side of an account.
SOLUTION:
Balancing
A debit balance to personal Accounts.
SOLUTION:
Debtor
A credit balance to bank Account.
SOLUTION:
Bank overdraft
An account to be debited for goods damaged by fire.
SOLUTION:
Loss by fire
A Trial Balance in which only net balances of all ledger accounts are transferred.
SOLUTION:
Net trial balance
Select appropriate alternatives from those given below and rewrite the sentence.
In case of a credit transaction one of the account must be a _________ account
Options
Cash
Credit
Personal
Debit
SOLUTION:
In case of a credit transaction one of the account must be a Personal account
‘c/d’ indicates _______ balance
Options
Opening
Closing
Positive
Negative
SOLUTION:
‘c/d’ indicates Closing balance
__________ Column of ledger is used for writing page number of Journal.
Options
J.F.
L.F.
Date
Particulars
SOLUTION:
J.F. Column of ledger is used for writing page number of Journal.
Debtors Account shows ___________ balance.
Options
Real
Negative
Credit
Debit
SOLUTION:
Debtors Account shows Debit balance.
_________ is the process of deriving the difference between totals of the debit and credit side of each ledger a/c.
Options
Totalling
Journalizing
Balancing
Posting
SOLUTION:
Balancing is the process of deriving the difference between totals of the debit and credit side of each ledger a/c.
Total of Purchase book is _________ to Purchase Account.
Options
posted
moved
given
entered
SOLUTION:
Total of Purchase book is posted to Purchase Account.
Real account always shows ____________ balance.
Options
minimum
maximum
debit
credit
SOLUTION:
Real account always shows debit balance.
_____________ is prepared to test arithmetical accuracy of Books of Accounts.
Options
Trial Balance
Ledger
Journal
List
SOLUTION:
Trial Balance is prepared to test arithmetical accuracy of Books of Accounts.
State whether the following statements are ‘True or False’ with reasons.
Ledger is a book of original entry.
Options
True
False
SOLUTION:
This statement is False.
Ledger is a book of final/secondary entry, as all the transactions from journal are to be transferred to ledger in their respective account. As such journal is a book of original entry.
The process of recording a transaction in the Journal is called Posting.
Options
True
False
SOLUTION:
This statement is False.
The process of transferring entries from the journal into appropriate account is called posting, which is a necessary or basic process of accounting to know the balance of each account.
A cash withdrawal from the business by the trader should be credited to Drawings A/c.
Options
True
False
SOLUTION:
This statement is False.
A cash withdrawal from the business by the trader should be debited to Drawings No as it is a personal transaction.
Balances of Nominal Accounts are carried forward to the next year.
Options
True
False
SOLUTION:
This statement is False.
Balances of Personal Accounts and Real Accounts are to be carried forward to the next year.
When debit side of an account is greater then the credit side, the account shows debit balance.
Options
True
False
SOLUTION:
This statement is True.
The name of an account written on top of each account is called ‘Head of Account'.
Options
True
False
SOLUTION:
This statement is True.
Agreement of Trial Balance always proves accounting accuracy.
Options
True
False
SOLUTION:
This statement is True.
Trial balance is based on the double entry principle that for every debit there is equal amount of corresponding credit.
Options
True
False
SOLUTION:
This statement is True.
Fill in the blank:
________ balance on Nominal Account shows expenses or loss.
SOLUTION:
Debit balance on Nominal Account shows expenses or loss.
Cash account always shows ______ balance
SOLUTION:
Cash account always shows debit balance
The right hand side of an account is called ___________ side.
SOLUTION:
The right hand side of an account is called credit side.
Creditors shows _________ balance
SOLUTION:
Creditors shows credit balance
___________ accounts are closed by transferring its balances to Profit and Loss Account.
SOLUTION:
Nominal accounts are closed by transferring its balances to Profit and Loss Account.
‘b/d’ means __________.
SOLUTION:
‘b/d’ means brought down
Rent paid for the residential quarter will be debited to ____________ account.
SOLUTION:
Rent paid for the residential quarter will be debited to Drawings account.
Sold goods of Rs. 24,000 at 20% profit on cost, the purchase price of the goods is ___________.
SOLUTION:
Sold goods of Rs. 24,000 at 20% profit on cost, the purchase price of the goods is Rs. 20,000.
Complete the following table:
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Balbharati Solutions for Book-keeping and Accountancy 11th Standard HSC Maharashtra State Board Chapterwise List - Free
Chapter 1: Introduction to Book - Keeping and Accountancy
Chapter 2: Meaning and Fundamentals of Double Entry Book-Keeping
Chapter 6: Bank Reconciliation Statement
Chapter 8: Rectification of Errors
Chapter 9: Final Accounts of a Proprietary Concern
Chapter 10: Single Entry System
