Gujarat Board GSEB Class 11 Commerce Accounts Important Questions Part 1 Chapter 9 Ledger Posting Important Questions and Answers.
GSEB Class 11 Accounts Important Questions Part 1 Chapter 9 Ledger Posting
Very Short Questions (VSQs)
Answer the following questions in one sentence : [1 mark each]
Question 1.
What is squared up account ?
Answer:
While making the totals in any account, if totals of both the sides are equal and there is no difference of amounts, then the account is called as Squared up account.
Question 2.
Why ledger is known as King of Books ?
Answer:
Fulfilment of main objects of accounting is possible, with the help of ledger only. Therefore, ledger is known as King of Books.
Question 3.
Which book of accounts is known as a Ledger?
Answer:
A ledger is also known as a Main book or a Principal book of accounts.
Question 4.
Which type of balance cash account has ? Why ?
Answer:
Cash is an asset of the business therefore the cash account has debit balance.
Question 5.
Which type of balance creditor’s account has? Why?
Answer:
Creditor is a giver of benefit and giver’s account is always credited, therefore creditor’s account has credit balance.
Question 6.
Which type of balance Investments of Provident Fund account has? Why?
Answer:
Investments of provident fund is an asset of the business therefore its account has a debit balance.
Question 7.
Explain the main object of the ledger.
Answer:
The main object of the ledger is to show the position of each account in the business.
Question 8.
What is meant by balance of an account ?
Answer:
Balance of an account means the difference between the totals of debit side and credit side of an account.
Question 9.
Where ‘balance carried forward’ is written ?
Answer:
Amount obtained as a balance, is written on the side of an account the total of which is less, in the amount column just before the line of total amount and in the column of particular balance carried forward (bal. c/f or bal. c/d) is written.
Question 10.
At the time of closing of account, in which side, the closing credit balance of an account is written?
Answer:
At the time of closing of account, the closing credit balance of an account is written on debit side.
Question 11.
Why most of the traders prefer bound book type ledger?
Answer:
Bound book type ledger is overall less expensive and easy from the view point of preservation, therefore most of the traders prefer this type of ledger.
Question 12.
Why balance of discount column is not found out, when discount columns are kept in. the cash book?
Answer:
On the basis of transactions two separate accounts for discount are to be prepared, viz. Discount allowed and Discount received. As both of these are totally different, therefore balance of discount column is not supposed to be found out.
Question 13.
Write the meaning of ledger folio.
Answer:
Each page of the ledger is serially numbered and page number of the account in the ledger is called ledger folio.
Question 14.
State the meaning of Debit balance.
Answer:
When the total of debit side of an account is greater than the total of credit side, the resultant balance of an account is called Debit balance.
Question 15.
What do you mean by Credit balance?
Answer:
When the total of credit side of an account is greater than the total of debit side, the resultant balance of an account is called Credit balance.
Question 16.
What do you mean by ‘Head of an Account’ ?
Answer:
Name of the account which is written on the top of the account just above the account (‘T’) is called ‘Head of an Account.’ e.g., FUrniture account.
Question 17.
What is balancing the ledger accounts?
Answer:
Balancing an account means finding the difference between the total of its debit and credit side.
Question 18.
What is an Account?
Answer:
An account means summary showing debit and credit effects of transactions affected during a specified period, related to either individual, goods, assets, incomes or expenses, prepared in a specific format according to the rules of accounting.
Question 19.
Write the other names of ledger.
Answer:
Ledger is also known as King of Books or Main book or Principal book of accounts.
Question 20.
Which type of information can be obtained from the ledger?
Answer:
From the ledger, information regarding financial position and profit-loss of a business can be obtained.
Question 21.
How many different forms of a ledger? Which are they?
Answer:
There are three different forms of a ledger, which are as follows:
- Bound book ledger
- Loose leaves ledger
- Card ledger
Question 22.
Which is the main limitation of bound book ledger?
Answer:
In bound book of ledger, the new pages can’t be added as per requirement. This is the main limitation of bound book of ledger.
Question 23.
Which is the main benefit of loose leaf ledger?
Answer:
In loose leaf ledger, a trader can increase or decrease the number of pages according to his requirement. This is the main benefit of loose leaf ledger.
Question 24.
What is the speciality of card ledger ?
Answer:
In card ledger, for each account, instead of a page, a card is used. All these cards are arranged with a steel bar.
Question 25.
How many accounts are affected in a combined journal entry?
Answer:
In combined journal entry, three or more than three accounts are affected.
Question 26.
State the classification of ledger in short.
Answer:
The following types of classifications are generally adopted by most of the traders :
- Ledger of individuals and
- General ledger.
Question 27.
Explain about General ledger in short.
Answer:
Out of total accounts of the business, except the accounts of debitors and creditors, accounts of all the remaining individuals and other accounts are maintained in one separate ledger, which is known as General ledger.
Question 28.
What is Creditor’s ledger ?
Answer:
A seperate ledger for business creditors of goods (suppliers of goods) is kept and it is known as Creditor’s ledger.
Question 29.
What is Debtors ledger ?
Answer:
A seperate ledger for business debtors of goods (customers of goods) is kept and it is known as Debtor’s ledger.
Question 30.
State the classification of creditors and debtors ledger.
Answer:
The creditors ledger and debtors ledger can be classified as under:
- Alphabetically and
- Areawise.
Question 31.
Where the balance of interest received on investment of provident fund is transferred at the end of the year?
Answer:
The balance of interest received on investment of provident fund is transferred to Provident Fund A/c at the end of the year.
Question 32.
What is the other name of Index of Ledger ?
Answer:
Index of Ledger is also known as Exponent of a ledger.
Question 33.
Where closing debit balance is written ?
Answer:
Closing debit balance is written on credit side of an account as a last item on last date, as a balance carried forward.
Short Sums for Ledger-Posting
Journalise the given transactions and post them in the ledger: [3 or 4 marks each]
Question 1.
Journalise the following transactions and post them in the ledger of Kavish:
2019
March 1 Brought cash ₹ 39,000 and personal furniture of ₹ 7,500 in the business.
3 Deposited ₹ 11,000 in bank.
Answer:
Question 2.
Journalise the following transactions and post them in the ledger: 2019
July 1 Purchased goods of ₹ 45,000 on cash
3 Brought additional capital of ₹ 60,000 in the business.
Answer:
Question 3.
From the following transactions, prepare the sales book of Shri Hemant and post them in ledger:
On 1 – 8 – 2019, goods of ₹ 30,000 are sold to Hema at 10% trade discount.
On 5 – 8 – 2019, goods of ₹ 8,000 are sold to Hiya with 25% profit thereon.
Answer:
Question 4.
From the following transactions, prepare the purchase book of Shri Meenakumari and post them in ledger:
On 1 – 7 – 2019, Goods of ₹ 9,000 are purchased from Heema at 20% trade discount.
On 5 – 7- 2019, Goods of ₹ 20,000 purchased from Jaya at 10% cash discount and paid half of the amount immediately.
Answer:
Question 5.
Prepare simple cash book from the following transactions and post them in the ledger: 2019
Feb. 1 Cash on Hand ₹ 10,000
4 ₹ 4,000 received from Mahesh towards our receivable.
5 ₹ 3,000 paid to Prakruti towards and old account.
Answer:
Multiple Choice Questions (MCQs)
Write the correct option from those given below each question: [1 mark each]
Question 1.
Which type of book is called the ‘Principal Book of Accounts’ ?
(a) Journal book
(b) Journal proper book
(c) Ledger book
(d) Book for noting transactions
Answer:
(c) Ledger book
Question 2.
When is said as debit balance of an account ?
(a) When the total amount of both the sides is equal.
(b) When there is no transaction in the account.
(c) When the total amount of the debit side is more.
(d) When the total amount of the credit side is more.
Answer:
(c) When the total amount of the debit side is more.
Question 3.
When the total amount of both the sides of an account is equal, then this account …………………. .
(a) is said as settled
(b) shows debit balance
(c) shows credit balance
(d) is called Suspence account
Answer:
(a) is said as settled
Question 4.
Debtor’s ledger is prepared from the entries of …………………. .
(a) purchase book and purchase return book
(b) sales book and sales return book
(c) personal accounts book
(d) bills payable book
Answer:
(b) sales book and sales return book
Question 5.
In which side of an account ‘closing credit balance’ is written ?
(a) Credit side
(b) Debit side
(c) Both the sides
(d) None of these
Answer:
(b) Debit side
Question 6.
How many forms of ledger are popular in practice ?
(a) Two
(b) Three
(c) Four
(d) Five
Answer:
(b) Three
Question 7.
Which book of accounts is known as Ledger?
(a) Original book of accounts
(b) Fundamental book of accounts
(c) Primary book of accounts
(d) Principal book of accounts
Answer:
(d) Principal book of accounts
Question 8.
Which form of ledger is seen in banks and in large scale companies ?
(a) Bound book ledger
(b) Loose leaf ledger
(c) Card ledger
(d) None of these
Answer:
(b) Loose leaf ledger
Question 9.
When more than one books are maintained for the ledger, then in which ledger Furniture A/c is maintained ?
(a) Debtor’s ledger
(b) Creditor’s ledger
(c) General ledger
(d) Private ledger
Answer:
(c) General ledger
Question 10.
When the total of the amount on debit side is more, then the balance of the account is said as …………………. .
(a) debit balance
(b) credit balance
(c) equal balance
(d) none of these
Answer:
(a) debit balance
Question 11.
When more than one books are maintained for the ledger, then in which ledger Capital A/c is maintained ?
(a) Debtor’s ledger
(b) Creditor’s ledger
(c) General ledger
(d) Private ledger
Answer:
(c) General ledger
Question 12.
Which book of accounts is known as Journal ?
(a) Principal book of accounts
(b) Primary book of accounts
(c) Main book of accounts
(d) Rough book of accounts
Answer:
(b) Primary book of accounts
Question 13.
The different types of accounts are prepared in a separate book, which is known as a ………………. .
(a) Cash book
(b) Subsidiary book
(c) Ledger
(d) Journal
Answer:
(c) Ledger
Question 14.
When total of credit amounts is more than the total of debit amounts, then the account ?
has ……………….. .
(a) debit balance
(b) credit balance
(c) suficient balance
(d) over balance
Answer:
(b) credit balance
Question 15.
How many sides of an account are there ?
(a) One
(b) Two
(c) Three
(d) Four
Answer:
(b) Two
Question 16.
Out of the following, which side of each account is known as Debit side ?
(a) Right-hand side
(b) Left-hand side
(c) Wrong side
(d) Right side
Answer:
(a) Right-hand side
Question 17.
Out of the following, which column is drawn
in an account ?
(a) L.F. No.
(b) J. E No.
(c) Re. No.
(d) V. No.
Answer:
(b) J. E No.
Question 18.
Which accounts are not opened in the ledger when three columnar cash book is maintained by trader ?
(a) Purchase and Sales account
(b) Discount Allowed and Discount Received account
(c) Cash and Bank account
(d) Capital and Drawings account
Answer:
(c) Cash and Bank account
Question 19.
How many columns are there on each side of an account?
(a) Two
(b) Three
(c) Four
(d) Eight
Answer:
(c) Four
Question 20.
In which form of ledger pages can’t be changed ?
(a) Bound book ledger
(b) Loose leaf ledger
(c) Card ledger
(d) None of these
Answer:
(a) Bound book ledger
Question 21.
Which form of ledger is a safe form with conveniences but overall, it is an expensive form ?
(a) Bound book ledger
(b) Loose leaf ledger
(c) Card ledger
(d) Multipurpose ledger
Answer:
(c) Card ledger
Question 22.
In a combined journal entry, how many accounts are affected ?
(a) Three
(b) Three or more than three
(c) Four
(d) Two or more than two
Answer:
(b) Three or more than three
Question 23.
Classification of ledger is also called ……………… .
(a) Ledger of Individuals
(b) General ledger
(c) Subsidiary ledger
(d) Alphabetically ledger
Answer:
(c) Subsidiary ledger
Question 24.
What is the other name of Creditor’s ledger ?
(a) Purchase ledger
(b) Sales ledger
(c) Customer’s ledger
(d) Payable ledger
Answer:
(a) Purchase ledger
Question 25.
What is the other name of Debtor’s ledger ?
(a) Trader’s ledger
(b) Receivable ledger
(c) Sales ledger
(d) Purchase ledger
Answer:
(c) Sales ledger
Question 26.
How index of ledger is prepared ?
(a) Alphabetically
(b) Areawise
(c) Datewise
(d) Randomly
Answer:
(a) Alphabetically
Question 27.
A systematic summary showing debit and credit effects of the financial transactions means ……………. .
(a) Journal
(b) Booking
(c) Account
(d) Accountancy
Answer:
(c) Account
Question 28.
How many sub-division of ledger are there ?
(a) Two
(b) Three
(c) Four
(d) Five
Answer:
(a) Two
Question 29.
Recording of an entry from Journal to ledger is called as …………….. .
(a) Balancing
(b) Posting
(c) Totalling
(d) Transferring
Answer:
(b) Posting
Question 30.
Left-hand side of an account is called as …………….. .
(a) Credit side
(b) Debit side
(c) Middle side
(d) Centre side
Answer:
(b) Debit side
Question 31.
What is prepared from the balances in ledger accounts ?
(a) Index
(b) Journal
(c) Trial balance
(d) Balance Sheet
Answer:
(c) Trial balance
Question 32.
All entries are posted from Journal to ………………. .
(a) Ledger
(b) Balance Sheet
(c) Trial balance
(d) Journal proper
Answer:
(a) Ledger
Question 33.
A bound book of accounts is ………………… .
(a) Ledger
(b) Journal
(c) Subsidiary book
(d) Cash book
Answer:
(a) Ledger