Ledger Test 4

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Ledger Test 4

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Weekly Quiz Competition

Question 1
1 / -0

Cash purchase of raw material is initially recorded in_________.

A
purchase day book

B
cash book

C
directly in Purchase A/c

D
any of the above three

Solution

All cash transactions are first recorded in cash book. Hence cash purchase of raw material is also to be recorded in cash book.
Question 2
1 / -0

_________ is concerned with the classification process of Accounting.

A
Ledger

B
Preparation of profit and loss a/c

C
Journalising

D
Balancing of leger

Solution

Once the business transactions are recorded in journal, this has to be posted in ledger. Posting of transaction in a ledger depends on the nature of transaction. Hence this is very much desired to have a proper classification of ledger. This may be classified in the form of personal ledger and impersonal ledger.
Question 3
1 / -0

________ is concerned with the systematic analysis of the recorded data with a view to group transactions or entries of one nature at one place.

A
Summarizing

B
Analysis

C
Classifying

D
Interpreting

Solution

Classification is concerned with the systematic analysis of the recorded data with a view to group transactions or entries of one nature at one place. The work of classification is done in the book called "ledger". This book contains on different pages individual account heads under which all financial transactions of similar nature are collected.
Question 4
1 / -0

A summary record of the changes in a particular asset, liability or owners equity is known as _________.

A
Account

B
Account current

C
Proforma Account

D
Ledger

Solution

The detailed record of all the changes that have occurred in a particular asset, liability, or owner's equity during a period is known as account. It is a record or statement of financial expenditure and receipts relating to a particular period or purpose.
Question 5
1 / -0

Expenses A/c will always have _______.

A
debit balance

B
credit balance

C
nil

D
debit or credit balance
Question 6
1 / -0

The transferring of amount from the journal to the appropriate accounts in the ledger is called _________.

A
Recording

B
Journalising

C
Journal entry

D
Posting

Solution

All journal entries must be transferred to a book to have the summary of each account. The book where these individual account are opened is called ledger. Process of transferring the entries from journal to ledger is called posting.
Question 7
1 / -0

Credit balance in which of these A/c indicates error in the A/c

A
Cash in hand A/c

B
Sales A/c

C
Capital A/c

D
Bank A/c

Solution

Cash in hand can be zero or positive but there can never be cash balance therefore, if cash balance is credit then there must be some mistake in that account.
Question 8
1 / -0

Double entry system was invented by an Italian merchant named Luco Pacioli in.........

A
1494 AD

B
1494 BC

C
1610 AD

D
1857 AD
Question 9
1 / -0

____________ has a debit balance.

A
Debtors Account

B
Sales Account

C
Creditors Account

D
Overdraft Account

Solution

When the goods are sold on credit, the customer who owes money for the goods is known as debtor. Amount is receivable from such debtors and hence it is considered as an asset for the business entity. Also assets will show a debit balance.
Hence, debtors being an asset to the entity will show a debit balance of an amount which is receivable from them.
Question 10
1 / -0

______________ has a credit balance.

A
Purchase account

B
Sales Account

C
Goodwill account

D
Cash account

Solution

As per the rules of accounting, revenue account will always have a credit balance showing income for the business entity.
Sales refers to the amount of goods or services provided to the customers in the course of business.
Sales being a revenue to the business entity will always have credit balance.

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Re-Attempt Weekly Quiz Competition

Ledger Test 4

Result

Ledger Test 4

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Rank

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SHARING IS CARING

Question 1

purchase day book

cash book

directly in Purchase A/c

any of the above three

Solution

Question 2

Ledger

Preparation of profit and loss a/c

Journalising

Balancing of leger

Solution

Question 3

Summarizing

Analysis

Classifying

Interpreting

Solution

Question 4

Account

Account current

Proforma Account

Ledger

Solution

Question 5

debit balance

credit balance

nil

debit or credit balance

Question 6

Recording

Journalising

Journal entry

Posting

Solution

Question 7

Cash in hand A/c

Sales A/c

Capital A/c

Bank A/c

Solution

Question 8

1494 AD

1494 BC

1610 AD

1857 AD

Question 9

Debtors Account

Sales Account

Creditors Account

Overdraft Account

Solution

Question 10

Purchase account

Sales Account

Goodwill account

Cash account

Solution

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Question Analysis

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-

Rank

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