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CBSE Questions for Class 9 Elements Of Book Keeping And Accountancy Ledger Quiz 5 - MCQExams.com
CBSE
Class 9 Elements Of Book Keeping And Accountancy
Ledger
Quiz 5
Which of the following is (are) benefit/s of subsidiary ledger accounts to business?
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It tells about customer attitude of payments
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It can be checked against the control account to pick up recoding errors
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It tells about the complete history of transactions of business client
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All of the given options
Explanation
The benefit/s of subsidiary ledger accounts to business are:
1.
It tells about customer attitude of payments
2.
It can be checked against the control account to pick up recoding errors
3.
It tells about the complete history of transactions of business client
The information that is not provided in the ledger is a _______________.
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Information regarding debtors
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Every information is provided with narration
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Information regarding creditors
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Information regarding purchases
Explanation
information in narration is recorded anywhere in the ledger.
Which of the following is an item of a debtors control account?
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Cash sale
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Credit sales
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Credit purchase
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Cash purchases
Explanation
The following are not included in debtors control accounts,
1) Bad debts recovered
2) Cash sales
3) Cash purchases
4) Increase in provision for doubtful debts
These four items do not affect debtors control account.
Therefore, C is the correct option.
Ledger is book for _________________.
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Analytical record
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Chronological record
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Alphabetical record
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None of above
Explanation
Analytical record
A ledger is made _____________.
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to classify all items appearing in Journal
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to record the transaction
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Both (a) and (b)
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None of these
Explanation
Ledger sorts out all the entries in journal under appropriate accounts for example all transactions related to cash are put in one account.
Goods returned by customer should be debited to which of the following accounts?
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Sales income account
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Sales account
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Return inward account
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Expenses account
Explanation
The journal entry for the above transaction will be
Return inwards/ sales return a/c Dr.
To Debtors a/c
Therefore, it will be debited to return the inwards account.
_____ is a book of account; in which all types of accounts relating to assets, liabilities, capital, expenses and revenues are maintained.
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Ledger
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Journal
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Primary entry book
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None of above
Explanation
Ledger is a secondary and principal book of account whereas all types of accounts relating to assets, liabilities, capital, expenses and revenues are maintained.
Ledger is prepared after recording the in the journal books.
Which of the following is an item of a creditors control account?
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Cash purchases
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Cash sales
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Credit sales
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Credit purchase
Explanation
Trade creditor control account, is part of the balance sheet and shows at any given time how much you owe to your suppliers.
When there is cash purchase then creditor may control because new creditor will not be arise.
So option a is the correct answer.
Posting is ___________________.
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The process of displaying results in balance sheet
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The process of displaying results in profit and loss account
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The process of recording the transactions in journal
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The process of recording the transactions in ledger
Explanation
Posting refers to the act of transferring information from the journal to the ledger. In the journal, the posting reference cites the account number to which the entry was posted.
Therefore, D is the correct option.
Which ONE of the following, in a classified form, contains permanent records of all transactions?
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Cash Book
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Sales Day Book
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Journal
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Ledger
Explanation
Ledger
contains permanent records of all transactions
Which of the following is recorded in the purchase book?
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Cash paid to a creditor
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Credit revenue purchases
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Cheque received from a debtor
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Purchase of fixed assets
Explanation
Purchase book is
a Subsidiary book
. The Purchase book or Purchase day book contains the record of all credit goods purchase. A Purchase book does not hold the record of purchases of assets.
At the end of the accounting year all the nominal accounts of the ledger book are ______________________.
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Balanced but not transferred to profit and loss account .
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Not balanced and also the balance is not transferred to the profit and loss account.
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Balanced and the balance is transferred to the balance sheet.
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Not balanced and their balance is transferred to the profit and loss account.
_______ is the principal book of accounts where similar transactions relating to a particular person or property or revenue or expense are recorded.
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Ledger
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Journal
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Purchases return books
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Sales book
Explanation
Ledger
is the principal book of accounts where similar transactions relating to a particular person or property or revenue or expense are recorded.
The total of the amount of the bills receivable book is posted to the _______in the ledger.
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Dr. of bills payable account
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Cr. of bills payable account
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Cr. of bills receivable account
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Dr. of bills receivable account
Explanation
The total amount of the bills receivable book is posted to the credit of the bills receivable account in the ledger.
Bills Receivable Book is a subsidiary book which records all bill receivable transactions.
Bills Receivable Book is Primary Book of Accounting.
Ledger is the ______ of accounts where similar transactions relating to a particular person or property or revenue or expense are recorded.
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Principal book
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Primary entry book
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Third entry book
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None of above
Explanation
Ledger is the principal book of accounts where similar transactions relating to a particular person or property or revenue or expense are recorded.
The process of transferring journal entries to ledger accounts is known as
Posting.
Ledger is also known as Book of Final Entry.
With the help of Ledger accounts, the trial balance is prepared.
Process of recording transaction in ledger is known as ____________.
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Balancing
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Posting
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Journalizing
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None of above
Explanation
When the transactions are recorded in ledger, than the process is known as posting.
The total of the amount of the bills payable book is posted to the _____ in the ledger.
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Dr. of bills payable account
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Cr. of bills payable account
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Cr. of bills receivable account
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Dr. of bills receivable account
Ledger book is popularly known as ____________.
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Secondary book of accounts
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Principal book of accounts
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Subsidiary book of accounts
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None of above
Explanation
Ledger book is popularly known as
Principal book of accounts
The following relate to the recording process. Which of these statements is correct_________.
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The general ledger is a chronological record, of transactions.
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The general ledger is posted from transactions recorded in the general journal.
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The trial balance provides the primary source document for recording transactions into the general journal
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Transposition is the transfer of information from the general journal to the general ledger.
Explanation
After the
transactions
are
recorded
in these
journals
, a summary of all the
transactions
is
posted
in each
journal
to
the general ledger
, which contains all of a company's accounts. An account is a separate, detailed
record
associated with a specific asset, liability, equity, revenue, or expense item.
Which of the following involves the preparation of reports and statements from the classified data (ledger) understandable and useful to management and other interested parties?
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Classifying
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Recording
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Summarizing
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All of the above
Suppose One Dealer has a credit of ' 5/-Lakhs in his Electronic ITC Ledger. That dealer has an interest arrears dues of '6/-Lakhs and Penalty Dues of ' 2/-Lakhs. If so, how much, he has to deposit to settle the above interest and Penalty Dues?
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3/-Lakhs
0%
6/-Lakhs
0%
2/-Lakhs
0%
8/-Lakhs
Goods costing Rs.10,000 destroyed as free sample should be credited to
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Purchase Account
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Sales account
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Cash Account
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Drawing Account
Explanation
The journal for goods distributed as free samples is -
Advertisement Expense A/c Dr 10000
To Purchases A/c 10000
Here, purchases account is credited because goods are going out of the business, when goods are brought in the business purchases account is debited, so when goods are going out of the business it is to be credited.
A cash purchase of goods for proprietor's personal use should be credited to __________________.
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Purchases Account
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Sales Account
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Drawings Account
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Cash Account
Explanation
A cash purchase of goods for proprietor's personal use should be credited to Cash Account.
The entry will be
Drawings a/c Dr.
To Cash a/c
Interest receivable from Mohan ( a Borrower) Account is -
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An Asset Account
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A Liability Account
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A Revenue Account
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An Expense Account
Explanation
Interest receivable from Mohan is an accrued income for the business, it is treated as an Asset.
Credit creation power of the commercial banks gets limited by which of the following?
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Banking habits of the people
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Cash Reserve Ratio
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Credit policy of the central bank
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All of the above
At the end of the accounting year all the nominal accounts of the ledger book are _________________.
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Balanced but not transferred to profit and loss account
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Not balanced and also the balance is not transferred to the profit and loss account
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Balanced and the balance is transferred to the balance sheet
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Not balanced and their balance is transferred to the profit and loss account
Explanation
Nominal Accounts are not balanced as they are transfer to profit and loss account
Payment to creditors is a manifestation of cash held for __________________.
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Transactionary Motive
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Precautionary Motive
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Speculative Motive
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All of the above
Explanation
Creditors are the suppliers who providing goods or services to the organization. On a day to day basis, payments need to be done to the customers for smooth operations. Creditors are classifies as current liabilities.
Cash is hold in the business for various motives.
Transactionary motive is one of them. It is the amount held by the business for day to day transactions such as payment of routine expenses or payment of creditors.
Which of the following statements best explains the relationship between journal and ledger?
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First recording in journal and then positing to ledger completes the double entry of the transaction
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The journal is the book of original entry, where as the ledger is the book of second entry
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The journal is the book for analytical record and ledger is the book for chronological record
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The process of recording, in the journal is called journalising, the process of recording in the ledger is called posting
Explanation
Book of original entry refers to journal where all the business transactions are recorded first in chronological order whereas ledger is a book which records all journal entries in individual ledger account.
Ledger is an account book in which ______________.
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only real accounts are opened
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only real and personal accounts are opened
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all the real, personal and nominal accounts are opened
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None of the above
Explanation
Business transactions are first entered in Journal or Special Purpose Subsidiary Books. The next step is to transfer the entries to respective accounts in ledger. In other word, all entries recorded in journal or special purpose subsidiary books are classified and in order to ascertain the position of a particular account, all transactions relating to that particular account are collected at one place in the ledger. In short, a ledger is a book which contains all accounts of the business enterprise whether Real, Personal or Nominal. Ledger is called the "Principal Book'. It is also called the book of final entry because the transactions which are first entered in journal or subsidiary books are finally incorporated in the ledger.
Left hand side of an account is ________.
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Debit side
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Credit side
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Income side
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Expenses side
Explanation
Debt and credit are two important terms used in Book-keeping and Accountancy. These two terms form the very basis of recording transactions in the books of accounts.
Left hand side of the account is called debit side. Hence, to debit an account means to record the transaction on the left hand side of the account. It is abbreviated as 'Dr.' The word 'debit' is originated from the Latin word 'Debitum' and it means what is due.
Whenever an asset increases, or equity or a liability decreases, a debit entry will be made in the appropriate account. Whenever an asset decreases, or equity or a liability increases, a credit entry will be made in the appropriate account. the difference between the two sides of an account can be calculated. This difference is called the balance of an account.
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Practice Class 9 Elements Of Book Keeping And Accountancy Quiz Questions and Answers
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