Ledger Test 8

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Ledger Test 8

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Weekly Quiz Competition

Question 1
1 / -0

Which of the following is a book of original entry and also part of the ledger?

A
The Journal

B
The Cash Book

C
The Purchase Book

D
The Sales Book

Solution

Cash is known as the book of original entry as well as it is part of ledger.
Question 2
1 / -0

If the closing inventory is valued at cost price and the prices are falling, which of the following method of inventory valuation would show more net income

A
LIFO

B
FIFO

C
Standard cost

D
Base stock price method
Question 3
1 / -0

A transaction recorded on the credit side of cash book is transferred to the ledger _______________.

A
On debit side of the account

B
On credit side of the account

C
Is not posted anywhere

D
Either (a) or (b).

Solution

Rules regarding posting of cash book are given below: (i) Transactions recorded on the debit side of cash book are posted on the credit side of accounts opened in the ledger. (ii) Transactions recorded on the credit side of the cash book are posted on the debit side of different accounts in the ledger.
Question 4
1 / -0

A transaction recorded on the debit side of cash book is transferred to the ledger _________________.

A
On the debit side of the account

B
On the credit side of the account

C
Is not posted anywhere

D
Both (a) and (b).

Solution

Rules regarding posting of cash book are given below:

(i) Transactions recorded on the debit side of cash book are posted on the credit side of accounts opened in the ledger.

(ii) Transactions recorded on the credit side of the cash book are posted on the debit side of different accounts in the ledger.
Question 5
1 / -0

Income received in advance is a .......

A
Real A/c

B
Nominal A/c

C
Personal A/c

D
Intangible A/c
Question 6
1 / -0

Balance of cash book is posted to the ledger ______________.

A
In the cash account

B
In bank account

C
Nowhere

D
Either (a) or (b).

Solution

A cash book is a financial journal that contains all cash receipts and disbursements, including bank deposits and withdrawals. Entries in the cash book are then posted into the general ledger.
Question 7
1 / -0

Goods taken by proprietor for domestic use should be credited to ___________.

A
sales account

B
proprietor's personal expenses

C
purchases account

D
expenses account

Solution

The journal entry of the goods taken by the proprietor for domestic use is:
Drawing account Dr.
To Purchases account
The goods taken by the proprietor for personal use, reduces the inventory of the business. Hence,it is placed on a temporary drawings account. It reduces the Owner's equity account. It is not an expense of the business.
Question 8
1 / -0

If the total of credit side of an account exceeds the total of its debit side, it indicates ________________.

A
Debit balance

B
Income

C
Losses

D
Credit balance

Solution

If the total of the debit side exceeds the total of credit side then this would be represented by a debit balance and opposite is true for a credit balance. When there is only one entry in an account, then obviously that item is the balance or difference between the two sides.
Question 9
1 / -0

Goods given as charity should be credited to _________ account.

A
Charity

B
Sales

C
Purchase

D
Cash

Solution

Charity refers to the voluntary giving of help, typically in the form of goods or money to those in need. When accounting for goods or article given as charity, The purchase are reduced with the exact cost of goods contributed. The journal entry for this transaction is as follows:
Charity A/c........Dr.
To Purchases A/c
Question 10
1 / -0

The objectives of preparing a Ledger are ____________.

A
to ascertain the debtors and creditors of the business

B
to ascertain the financial position of the business

C
to ascertain the profit or loss of the business

D
All of the above

Solution

Objectives of preparing ledger are:-
1. To ascertain the debtors and creditors of the business
2. To ascertain the financial position of the business
3. To ascertain the profit or loss of the business
4. To ascertain the collective effect of all transactions pertaining to a particular account
Therefore, D is the correct option.

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Re-Attempt Weekly Quiz Competition

Ledger Test 8

Result

Ledger Test 8

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SHARING IS CARING

Question 1

The Journal

The Cash Book

The Purchase Book

The Sales Book

Solution

Question 2

LIFO

FIFO

Standard cost

Base stock price method

Question 3

On debit side of the account

On credit side of the account

Is not posted anywhere

Either (a) or (b).

Solution

Question 4

On the debit side of the account

On the credit side of the account

Is not posted anywhere

Both (a) and (b).

Solution

Question 5

Real A/c

Nominal A/c

Personal A/c

Intangible A/c

Question 6

In the cash account

In bank account

Nowhere

Either (a) or (b).

Solution

Question 7

sales account

proprietor's personal expenses

purchases account

expenses account

Solution

Question 8

Debit balance

Income

Losses

Credit balance

Solution

Question 9

Charity

Sales

Purchase

Cash

Solution

Question 10

to ascertain the debtors and creditors of the business

to ascertain the financial position of the business

to ascertain the profit or loss of the business

All of the above

Solution

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