“25” Short Questions and Answers- Ledger
The importance of Ledger in accounting is immense. Ledger is called the permanent book of all accounts. The financial statement is prepared on the basis of the ledger balance. So, today I’ll share “25 Short Questions and Answers-Ledger.”
If you read it from the beginning to the end, you will get the basic idea of the ledger that will definitely help you to do well in any competitive exams.
For theory read these articles:
So let’s get started
Question-01: What is Ledger?
Answer: The book in which a trader’s transactions are recorded in a classified permanent form is called the ledger.
Question-02: What is the feature of the ledger?
Answer: The main feature of Ledger is as follows
- Each account is given a heading.
- “T” table and Moving Balance table are followed to prepare ledger.
- Record the date, the amount of money, and the journal folio no.
- The balance of each of the accounts is identified individually.
- Verify the arithmetic accuracy of accounting activities.
Question-03: What is the importance or necessity of Ledger?
Answer: The importance of ledger is as follows
- Permanent records of transactions
- Summarizing and classifying the transactions
- Providing the arithmetical accuracy
- Provide information about financial conditions.
- Preventing misappropriation and fraud.
Question-04: Why ledger is called the king of all the books?
Answer: Ledger is called the king of all the books because it
- Keeps records permanently.
- Classify the accounts
- Provides the financial picture of the organization
- Helps to prepare final accounts of the organization.
- Justify arithmetical accuracy.
Question-05: From which word does the word “Ledger” come?
Question-06: What does the word “ledge” mean?
Question-07: What is the permanent book of accounts?
Question-08: What is the ledger based on?
Answer: Based on the Journal.
Question-09: Why is Ledger called Shelf?
Answer: Due to the arrangement of the transactions.
Question-10: How many types of personal ledgers and what are they?
Answer: 2 types. Debtors Ledger and Creditors Ledger.
Question-11: How many types of impersonal ledgers and what are they?
Answer: 2 Types. Assets & Liabilities related Ledger and Nominal Ledger.
Question-12: Which is the most commonly used “Ledger format” in modern times?
Answer: Moving Balance Format.
Question-13: How many money columns are there in Ledger’s Moving Balance format?
Answer: Four (4)
Question-14: What is Balance?
Answer: The difference between the posted amount in debit and credit side of the accounts is known as balance.
Question-15: What is the balancing of accounts?
Answer: The act of equalizing the two sides of the account is called the balancing of accounts.
Question-16: What is the meaning of C/D, B/D, C/F, B/F, B/O, and C/O?
- C/D-Carried Down
- B/D-Brought Down
- C/F-Carried Forward
- B/F-Brought Forward
- B/O- Brought Over
- C/O- Carried Over
Question-17: Which one is made on the basis of ledger accounts balance?
Answer: Trial balance.
Question-18: Which balance indicates all types of assets and expenses?
Answer: Debit Balance
Question-19: Which balance indicates all types of liabilities and incomes?
Answer: Credit Balance.
Question-20: What is to be written at the time of writing the closing balance of the ledger?
Answer: C/D or C/F
Question-21: What is to be written at the time of writing the opening balance of the ledger?
Answer: B/D or B/F
Question-22: On the basis of what information is the right decision taken to run a business?
Answer: Based on the information obtained from the ledger.
Question-23: What is the main advantage of the “Moving balance table”?
Answer: The balance of each account is always available.
Question-24: How many columns have a “traditional ledger table”?
Answer: Eight (8)
Question-25: What is the main purpose of preparing a ledger account?
Answer: Determine the balance of the account.
I hope you have a basic idea about ledger at the end of the article. If you practice these “25 Short Questions and Answer-Ledger” on a regular basis, it will certainly help you improve your accounting skills.
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