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Ledger & Trial Balance - MCQs with Answers

Ledger & Trial Balance - MCQs with Answers


Ledger & Trial Balance - MCQs with Answers

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MCQS with Answers 

LEDGER CALLED KING OF ALL BOOKS
In ledger various accounts are posted from journal, so it is called king of all books.
ADVANTAGES OF THE LEDGER
  1. Ledger provides better information, to management to increase income and decrease losses of the business.
  2. From it financial position of the business is known.
POSTING
Business transactions are recorded first of all in journal and then recorded
from it into ledger. This process is called posting.
TRIAL BALANCE
It is very useful in business. Debit and credit balance are recorded in trial balance.

BALANCE
Balance is ascertained from the debit and credit side of an account.
BALANCING OF AN ACCOUNT
When difference of an account is allocated from its total is called balancing of account
KINDS OF LEDGER
  1. General Ledger 2.  Debtor’s ledger       3. Creditor’s ledger.
DEBTOR,S LEDGER
In these ledgers, all transactions are posted whom goods and services are provided on credit.
CREDITOR,S LEDGER
In these ledgers, all transactions are posted from whom goods and service are buying on credit.
GENERAL LEDGER
All information about assets, expenses, incomes and gains of the business are recorded in general ledger.
DEBIT BALANCE
If debit side of an account is more than credit side its balance is known as debit balance. Assets and expenses have debit balance.
CREDIT BALANCE
If credit side of an account is higher than debit side, it is known as credit balance. Liabilities and Income have credit balance.
ZERO BALANCE
When both sides of an account are equal itself is called zero balance. It is not transferred to trial balance.
SUB DIVISION OF LEDGER
In a large size of organization sub division of ledger is needed.
FOLIOING
The page number of ledger is written in journal and page number of journal is written in ledger is called folioing.
METHOD OF PREPARING A TRIAL BALANCE
Trial balance is prepared by following two methods  i. Total Balance  ii. Balance method.
BETTER KIND OF PREPARING A TRIAL BALANCE
Balance method is better because it provides  true screen of a business, but total balance method is complicated to understand.
Ledger & Trial Balance - MCQs with Answers
Following Multiple Choice Questions (MCQs) are related with Ledger and Trial Balance. You will find below 28 Multiple Choice Questions (MCQs) with Answers.
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MCQS with Answers 

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