Ledgers Quizz

1. At the end of the accounting year all the nominal accounts of the ledger book are

A. Balanced but not transferred to profit and loss account

B. Not balanced and also the balance is not transferred to the profit and loss account

C. Balanced and the balance is transferred to the balance sheet

D. Not balanced and their balance is transferred to the profit and loss account.

2. The process of transferring the debit and credit items from a Journal to their respective accounts in the ledger is termed as

A. Posting

B. Purchase

C. Balancing of an account

D. Arithmetically accuracy test

3. Journal and ledger records transactions in

A. A chronological order and analytical order respectively.

B. An analytical order and chronological order respectively.

C. A chronological order only

D. An analytical order only.

4. Which of the following accounts may have a debit or a credit balance?

A. Partner’s Current Account

B. Purchase Account

C. Commission (Recd) Account

D. None

5. What will be the Journal Entry when goods purchased are returned?

A. Creditors A/c Dr.
To Purchase Returns A/c

B. Purchase Return A/c Dr.
To Creditors A/c

C. Creditors A/c Dr.
To Sales A/c

D. None of these

6. Which of the following is known as “Principal Books of Accounts”?

A. Ledger

B. Journal

C. Trial balance

D. Balance sheet

7. The credit balance of a personal account shows:

A. Cash in hand

B. The amount payable

C. Income

D. Amount receivable

8. Interest amount is Rs.500. What will be the amount of reimbursement if the following expenses were incurred by petty cashier during the month? Telephone Rs.150, Breakfast Rs.50, Small repairs Rs. 30 General expenses Rs.100

A. Rs. 300

B. Rs. 170

C. Rs. 330

D. Rs. 270

9. Ledger records transaction in :

A. A chronological order

B. Analytical order

C. Both of the above

D. None

10. From the following details find out credit sales during the financial year 2010-2011:
1. Opening balance of sundry debtors on 1.4.10 Rs. 12,000.
2. Bills receivable accepted by customer Rs. 13,000
3. Closing balance of Sundry Debtors on 31.3.11 Rs. 14,000.
4. Cash received from debtors during the year Rs. 38,400

A. Rs. 39,400

B. Rs. 27,000

C. Rs. 65,400

D. Rs. 53,400

11. Purchase Return Account always shows a _______ balance.

A. Debit

B. Credit

C. Either (a) or (b)

D. None

12. Discount Account will always have:

A. Only debit balance

B. Nil balance

C. Only credit balance

D. Debit or Credit balance

13. Cash account is a :

A. Personal Account

B. Real account

C. Nominal account

D. None of these

14. Cash Sales Rs. 50,000
Cash collected from debtors Rs.1,30,000
Bad debts during year Rs. 5,000
Debtors at beginning Rs. 10,000
Total Sales will be :

A. Rs. 1,75,000

B. Rs. 1,70,000

C. Rs. 1,80,000

D. Rs. 1,78,000

15. Which of these Account is Debited:

A Income received in advance

B Bank Loan

C Prepaid Insurance Premium

D Reserve for doubtful debts

16. The next step after preparation of Ledger is the preparation of ________:

A. Trial balance

B. Final Accounts

C. Cash Flow statement

D. Balance sheet

17. The process of transferring the transaction relating to changes in a particular item at one place in the form of an account is called __________:

A. Balancing

B. Casting

C. Journalizing

D. Posting

18. If the owner withdraws amount from the business for personal use, then which A/c is to be debited?

A. Capital A/c

B. Drawings A/c

C. Owners A/c

D. None of these

19. X purchased goods on 90 days credit from Y worth Rs. 20,000. Y has given a trade discount of Rs. 1,000 on the same. Since Y also offered a cash discount of Rs. 500, if payment is made within 30 days, X avails the cash discount and paid the dues to Y. At the end of the year the goods purchases from Y remain unsold and included in the stock. The value of such goods would be:

A. Rs. 20,000

B. Rs. 19,500

C. Rs. 19,000

D. Rs. 18,500

20. Furniture of book value of Rs. 20,000 was sold for Rs. 6,000 and new furniture of Rs. 20,000 was purchased. Amount debited towards purchase of new furniture will be:-

A. Rs. 14,000

B. Rs. 29,000

C. Rs. 5,000

D. Rs. 20,000