MCQs BASED ON LEDGER
1. A ledger is called a book of
a) Primary entry
b) Secondary entry
c) Final entry
d) None of these
2. A ledger account is prepared from
a) Events
b) Transactions
c) Journal
d) None of these
3. The debit balance of a personal account indicates:
a) Amount receivable
b) Amount payable
c) Cash in hand
d) None of these
4. The balance of cash account indicates
a) Net Income
b) Cash in hand
c) Total cash received
d) Total cash paid
5. The trial balance shows
a) Both debit and credit balance
b) Only debit balance
c) Only credit balance
d) None of these
6. Business transactions are recorded
a) In chronological order
b) Weekly
c) at the end of month
d) Any of these
7. The credit balance of bank account indicates
a) Bank balance
b) Amount payable to bank
c) Amount payable by the bank
d) None of these
8. Which of following accounts will invariably have a debit
balance?
a) Account receivable
b) Account payable
c) Current account of partner
d) Bank account
9. Which of the following accounts will invariable have
credit balance?
a) Current account of proprietor
b) Account receivable
c) Account payable
10. Personal account of a customer is likely to have
a) Only debit entries
b) Only credit entries
c) Both debit and credit entries
11. Ledger is a book in which
a) Real and nominal account are maintenance.
b) Real and personal account are maintained
c) Real, personal and nominal account are maintained
d) None of above
12. If you required to prepare the ledger account of a
creditor, on which side of ledger account will you show.
a) Opening credit balance
b) Closing credit balance
c) Opening debit balance
d) Closing debit balance
13. The column of ledger which links the entry with journal
is
a) L.F. Column
b) J.F. Column
c) Debit Column
d) Credit Column
14. Putting on the credit side of an account is written as
a) Being
b) To
c) By
d) From
15. Nominal account having debit balance represents
a) Income/Gain
b) Expenses/Loss
c) Cash
d) Assets
16. Account having credit balance is closed by writing
a) To balance c/d
b) To balance b/d
c) By balance c/o
d) By balance b/d
17. When the total of debit and credit are equal, it
represents
a) Debit balance
b) Credit balance
c) Nil balance
d) Current balance
18. Which of the following account is increased by credit
entries?
a) Sales return a/c
b) bank overdraft
c) goodwill a/c
d) Purchase a/c
19. The process of transferring the debit and credit items
from a journal to their respective account in the ledger is termed as?
a) Balancing
b) Posting
c) Arithmetic
d) Entry
20. The account is a device used by the accountant to record
a) Increase
b) Decreases
c) Increase and Decrease
d) None of above
21. Which of the following item is not increased in the cash
account?
a) Purchase of 20000
b) Sale of 5000
c) Received cash from Ram 10000
d) Credit sale of 20000
22. Book of account when transaction related to a particular
person on things are recorded.
a) General Journal
b) Trial balance
c) General Ledger
d) Worksheet
23. When a liability is reduced or decreased, it is recorded
on the?
a) Right or debit side of account
b) Left or debit side of account
c) Left or credit side of account
d) Right or credit side of account
24. General ledger is also known as?
a) Book of original entry
b) T-Account
c) Source document
d) Voucher
25. The records that are kept for the individual asset,
liability, equity, revenue, expenses and drawing components are known as
a) Journals
b) Vouchers
c) Accounts
d) Statements
26. Purchase return account always shows a _______ balance.
a) Debit
b) Credit
c) Both (a) and (b)
d) None of these
27. The next step often preparation of ledger is the
preparation of?
a) Trial balance
b) Final account
c) Cash flow statement
d) Balance sheet
28. Discount account will always have
a) Only debit balance
b) Nil balance
c) Only credit balance
d) Debit or credit balance
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