Ledger | Aster Classes

One hour test

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Q.1. Write a word, term, phrase, which can substitute each of the statement. 👈 Click here.

Q.2. Select proper alternate from those given below and rewrite the sentence. 👈 Click here.

Q.3. State whether the statement are true or false. 👈 Click here

Q.4. Fill in the blanks. 👈 Click here

Q.5 Solve the following sums.

Q.1. Click and solve.👈 Click here

Q.2. Click and solve.👈 Click here


All the very best

Q.5 Solve the following sums.

Sum.no. Q.2.


Q.5 Solve the following sums.

Sum no Q.1.


Q.4. Fill in the blanks


Q.3. State whether the statement are true or false.


Q.2. Select appropriate alternate from those given below and rewrite the sentence.


Q.1. Write a word, term, phrase, which can substitute each of the statement.


Chapter 4: Ledger

Answer in one sentence only

1.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.

2.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.

3.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.

4.What is Folio?

SOLUTION

Folio means page number.

5.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.

6.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.

7.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.

8.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.

1.Principal Book of accounts.

SOLUTION

Ledger

2.Transferring a journal entry to the appropriate accounts in the ledger.

SOLUTION

Posting

3.Page number of the Ledger to which an entry is posted.

SOLUTION

Ledger folio

4.The process of extracting the balance and inserting it on lesser side of an account.

SOLUTION

Balancing

5.A debit balance to personal Accounts.

SOLUTION

Debtor

6.A credit balance to bank Account.

SOLUTION

Bank overdraft

7.An account to be debited for goods damaged by fire.

SOLUTION

Loss by fire

8.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.

1.In case of a credit transaction one of the account must be a ……account

  • Cash
  • Credit
  • Personal
  • Debit

‘2.c/d’ indicates _______ balance

  • Opening
  • Closing
  • Positive
  • Negative

____Column of ledger is used for writing page number of Journal.

  • J.F.
  • L.F.
  • Date
  • Particulars

4.Debtors Account shows ___________ balance.

  • Real
  • Negative
  • Credit
  • Debit

5._________ is the process of deriving the difference between totals of the debit and credit side of each ledger a/c.

  • Totalling
  • Journalizing
  • Balancing
  • Posting

6.Total of Purchase book is ___ to Purchase Account.

  • posted
  • moved
  • given
  • entered

7.Real account always shows _____ balance.

  • minimum
  • maximum
  • debit
  • credit

8.__ is prepared to test arithmetical accuracy of Books of Accounts.

  • Trial Balance
  • Ledger
  • Journal
  • List

State whether the following statements are ‘True or False’ with reasons.

1.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.

2.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.

3.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.

4.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.

5.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.

6.The name of an account written on top of each account is called ‘Head of Account’.

Options
  • True
  • False

SOLUTION

This statement is True.

7.Agreement of Trial Balance always proves accounting accuracy.

Options
  • True
  • False

SOLUTION

This statement is True.

8.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:

1.________ balance on Nominal Account shows expenses or loss.

SOLUTION

Debit balance on Nominal Account shows expenses or loss.

2.Cash account always shows ______ balance

SOLUTION

Cash account always shows debit balance

3.The right hand side of an account is called ___________ side.

SOLUTION

The right hand side of an account is called credit side.

4.Creditors shows _________  balance

SOLUTION

Creditors shows credit balance

5.___________ 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.

6.‘b/d’ means __________.

SOLUTION

‘b/d’ means brought down

7.Rent paid for the residential quarter will be debited to ____________  account.

SOLUTION

Rent paid for the residential quarter will be debited to Drawings account.

8.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.

1.Complete the following table:

JournalJournalising
?Posting

SOLUTION

JournalJournalising
PostPosting

2.Complete the following table:

Sales ReturnReturn Inward
Purchase Return?

SOLUTION

Sales ReturnReturn Inward
Purchase ReturnReturn Outward

3.Complete the following table:

  L.F.Journal
?Ledger

SOLUTION

  L.F.Journal
J.F.Ledger

4.Complete the following table:

AssetsDebit Balance
Liabilities?

SOLUTION

AssetsDebit Balance
LiabilitiesCredit Balance

5.Complete the following table:

Land & BuildingReal Account
Commission Received?

SOLUTION

Land & BuildingReal Account
Commission ReceivedNominal Account

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