VS LEDGER 

 One word to one sentence questions

Q .1     What is ledger ?

Ans      ledger is the principal or primary book of accounts , in it the information is classified by nature and relevance .

Q . 2    What is an account ?

Ans      The statement which records the  transactions at one place relating to a particular subject is known as an account .

Q. 3      Give any one difference between journal and ledger .

Ans      as soon as the transaction originates , it is recorded in journal and the transactions are posted in the ledger after the same  have been recorded in the journal

Q. 4      Give any two advantages of ledger .

Ans      It helps in preparing final accounts .

Information of various assets can be ascertained quickly with the help of ledger .

Q. 5      What is debit balance ?

Ans      The excess of the total of credit  side over the total of debit side is called credit balance .

Q. 6      What is credit balance ?

Ans      The excess of total of credit side over the total of debit side is called credit balance .

Q. 7      What do you mean by balancing of accounts ?

Ans      Balancing means to find out the difference between debit and credit side of ledger accounts .

Q. 8      Write any two accounts which will always have debit balances ?

Ans      Purchases account , accounts payable .

Q. 9      Write any two accounts which will always have debit balances ?

Ans      Sales account , accounts payable .

Q. 10   Why are nominal accounts closed ?

Ans      All the nominal accounts are not balanced because these are transferred to trading and profit s loss accounts.

FILL IN THE BLANKS

1.      A ledger is a ___________book

2.      Nominal account having credit balance represents ____________.

3.      Real accounts can ,t have __________balance.

4.      Posting on the credit side of an  account is written as -___________.

5.      Impersonal ledger is also known as ____________ledger .

Ans 1. Principal 2. Income / gain 3. Credit 4. By 5. General 

TRUE OR FALSE STATEMENTS

1.      Ledger is a book of original entry .

2.      Ledger is ultimate destination of all the transactions .

3.      Transactions are recorded first in ledger .

4.      In ledger , narration is not required .

5.      Profit and loss account is the most  important account in the ledger .

6.      L.F in the journal is filled at the time of position

7.      Debit balance of a   nominal account shows income of the business.

8.      All business transactions are first of all recorded in a ledger .

9.      The process of recording a transaction in the ledger is called posting .

10.   The balance of an account is always known by the side which is in excess.

Ans 1. False 2. True 3. False 4. True 5. False 6. True 7. False 8. False 9. True 10. True

MULTIPLE CHOICE QUESTIONS

1.      The left hand side of an account i known as

A.  Credit  side

B.  Debit side

C.  Credit and debit side

D.  None of these

2.      Which of the following accounts have only credit balances ?

A. Reserve fund account

B. Capital account

C. Account payable

D. All of these

3.      The credit balance of bank account indicates .

A.  Balance in bank

B.  Amount payable by the bank

C.  Amount payable to the bank

4.      The balance of cash account  indicates .

A. Net income

B. Cash  in hand

C. Total cash received

5.      Personal account of a customer is likely to have .

A.   Only debit entries

B.   Only credit  entries

C.   Both debit and credit entries

6.      Received Rs .9800 from anant in full settlement of Rs 10, 000 posting of Rs .200 will be made to the .

A.   Debit side of Anant ‘ s A/C

B.   Credit side of Anant ‘s all

C.   Debit side of discount A/C

D.   Credit side of discount A/C

7.      Paid to divya  Rs 22000 in full settlement of Rs . 24000 , posting will be made in divya ‘ s A/C .

A.   24000 on debit side

B.   24000 on credit side

C.   22000 on debit side

D.   22000 on credit side

8.      Purchased goods from lshu of Rs .40, 000 at 10% trade discount posting will be made in lshu A/C

A.   Debit side Rs 40,000

B.   Credit side Rs 40,000

C.   Debit side Rs 39,000

D.   Credit

9.      Kavita who owed us Rs . 10 , 000 became insolvent and paid us 70% in full settlement posting will be made to kavita A/C .

A.   Rs 10,000 on debit side

B.   Rs 10,000 on credit side

C.   Rs 7000 on debit side

D.   Rs 7000 on credit  side

10.   Sold goods for cash of  the list price of Rs. 10 .000 at 10% trade discount and 10% cash discount . posting will be made in discount A/C

A.   Rs 900 on debit side

B.   Rs 900 on credit side

C.   Rs 1000 on debit side

D.   Rs 1000 on credit side

Ans (1) A   (2) D   (3)C (4) B   (5) C   (6)C (7) A   (8) D (9) B   (10) A