Test: Ledgers - 1


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30 Questions MCQ Test Crash Course of Accountancy - Class 11 | Test: Ledgers - 1

Test: Ledgers - 1 for Commerce 2022 is part of Crash Course of Accountancy - Class 11 preparation. The Test: Ledgers - 1 questions and answers have been prepared according to the Commerce exam syllabus.The Test: Ledgers - 1 MCQs are made for Commerce 2022 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Ledgers - 1 below.
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Test: Ledgers - 1 - Question 1

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

Detailed Solution for Test: Ledgers - 1 - Question 1

The nominal accounts at the end of the year are not balanced but are closed by transferring their balance to the profit and loss accounts, hence they do not appear in the balance sheet.

Test: Ledgers - 1 - Question 2

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

Detailed Solution for Test: Ledgers - 1 - Question 2

Each journal item is transferred to the ledger in their respective account. It is termed as posting.

Test: Ledgers - 1 - Question 3

 Journal and ledger records transactions in 

Detailed Solution for Test: Ledgers - 1 - Question 3

In bookkeeping and accounting, a ledger is a book (or record) for collecting historical transaction data from a journal and organizing entries by account. The ledger provides the transaction history and current balance in each accounting system account, throughout the accounting period.

Test: Ledgers - 1 - Question 4

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

Detailed Solution for Test: Ledgers - 1 - Question 4

In case of partnership type of ownership in a business, partner current account is prepared when capital is fixed. Transactions such as drawings, salary, and interest on capital and drawings are recorded. The balance of this account fluctuates every year. The balance can be both credit or debit.

Test: Ledgers - 1 - Question 5

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

Test: Ledgers - 1 - Question 6

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

Detailed Solution for Test: Ledgers - 1 - Question 6

Ledger is the principal book or computer file for recording and totaling monetary transactions by account, with debits and credits inseparate columns and a beginning balance and ending balance for each account.

Test: Ledgers - 1 - Question 7

The credit balance of a personal account shows: 

Detailed Solution for Test: Ledgers - 1 - Question 7

The credit balance of a personal account shows the amount payable to a person as it denotes a liability due to a person. The person in whose books a personal account has a credit balance has to pay the amount as a debt due.

Test: Ledgers - 1 - Question 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

Detailed Solution for Test: Ledgers - 1 - Question 8

150+100+30+50= 330. Interest amount is not included in the reimbursement

Test: Ledgers - 1 - Question 9

Ledger records transaction in :

Detailed Solution for Test: Ledgers - 1 - Question 9

The correct option is Option B.

In bookkeeping and accounting, a ledger is a book (or record) for collecting historical transaction data from a journal and organizing entries by account. The ledger provides the transaction history and current balance in each accounting system account, throughout the accounting period.

Test: Ledgers - 1 - Question 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

Detailed Solution for Test: Ledgers - 1 - Question 10

Credit sale = total credit - total debit
so, 65400-12000=53400

Test: Ledgers - 1 - Question 11

 Which of the following is a real account?

Detailed Solution for Test: Ledgers - 1 - Question 11

There are mainly three types of accounts:
i) Real
ii) Personal and
iii) Nominal accounts.

All assets of a firm, which are tangible or intangible, fall under the category "Real accounts".

Tangible real accounts are related to those things that can be touched and physically felt. Few examples of tangible real accounts are buildings, machinery, stock, land, etc.

Intangible real accounts are those which can't be touched and physically felt. Few examples of intangible real accounts are trademarks, patents, goodwill, etc.

Test: Ledgers - 1 - Question 12

Which of the following statement is correct?

Detailed Solution for Test: Ledgers - 1 - Question 12

Correct Answer :- a

Explanation : A cash payments journal is used to record transactions that are paid in the form of cash. A cash payment can include paying a creditor or commission fee, making an interest payment, or withdrawing cash. If any payment is made using cash, it is recorded in the cash payments journal.

Test: Ledgers - 1 - Question 13

 Purchase Return Account always shows a _______ balance.

Detailed Solution for Test: Ledgers - 1 - Question 13

purchase return account shows the credit balancePurchase return represents the amount of goods returned to the supplier. When goods are bought from a supplier, the purchases A/c will be debited and when the goods are returned, the purchase return A/c will be credited as stock is reduced.

Test: Ledgers - 1 - Question 14

Discount Account will always have:

Detailed Solution for Test: Ledgers - 1 - Question 14

Discount is a nominal account which can have either a debit or a credit balance because discount can be allowed as well as received. If it is discount allowed it can have a debit balance and if it is discount received it can have a credit balance.

Test: Ledgers - 1 - Question 15

 Cash  account is a :

Detailed Solution for Test: Ledgers - 1 - Question 15

Cash Account is Real account. A real account is an account that retains and rolls forward its ending balance from period to period. The areas in the balance sheet in which real accounts are found are assets, liabilities, and equity.

Test: Ledgers - 1 - Question 16

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 :

Detailed Solution for Test: Ledgers - 1 - Question 16

Total sales = Cash sales + cash collected from debtors - (Debtors at beginning - Bad debts during year).
So, 50000 + 130000 - (10000 - 5000) = 175000

Test: Ledgers - 1 - Question 17

Which of these Account is Debited: 

Detailed Solution for Test: Ledgers - 1 - Question 17

The prepaid amount will be reported on the balance sheet after inventory and could part of an item described as prepaid expenses. As the prepaid amount expires, the balance in prepaid insurance is reduced by a credit to prepaid insurance and a debit to insurance expense.

Test: Ledgers - 1 - Question 18

 The miscellaneous expenses account is likely to have : 

Detailed Solution for Test: Ledgers - 1 - Question 18

Miscellaneous expenses are nominal in nature and therefore the rules of nominal account apply to it.
The rule is:

• Debit all expenses and losses
• Credit all incomes and gains

Since, the expenses are to be debited as per the rule hence, it is likely to have debit entries generally.

Test: Ledgers - 1 - Question 19

Credit balance in ledger will be either:-

Test: Ledgers - 1 - Question 20

A opened an account with Rs. 5,000 on 3/12/09. He deposited Rs. 1,000 on 7/12/09. He withdraw Rs. 2,000 on 15/12/09 and deposited a cheque of Rs. 10,000 on 20/12/09. What is the balance on 31/12/09?

Test: Ledgers - 1 - Question 21

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

Detailed Solution for Test: Ledgers - 1 - Question 21

After the preparation of ledgers, the next step is the preparation of trial balance. After, pupation of ledger accounts all the balances of the ledger accounts are transferred to trial balance and it should tally. The trial balance checks the arithmetical accuracy of the books of accounts.

Test: Ledgers - 1 - Question 22

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

Detailed Solution for Test: Ledgers - 1 - Question 22

Journal is a book of recording all the transactions. It does not give a summarize details of each of the account. An individual account is opened in ledger to record all the specific transactions of each activity. Each journal item is transferred to the ledger in their respective account. It is termed as posting.

Test: Ledgers - 1 - Question 23

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

Detailed Solution for Test: Ledgers - 1 - Question 23

Drawings are the amounts taken by the owner of a business for his personal use in anticipation of profit. Drawings are usually made in the form of cash, but there could be other assets or goods withdrawn by the owner for his personal use.

Test: Ledgers - 1 - Question 24

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:

Detailed Solution for Test: Ledgers - 1 - Question 24

Correct Answer :- c

Explanation : If goods remain unsold then there will be no deduction of cash discount from total amount but trade discount will be deducted.

Therefore, trade discount = 20000 - 1000

= 19000.

Test: Ledgers - 1 - Question 25

The payment to a creditor will?

Detailed Solution for Test: Ledgers - 1 - Question 25

Payment to a creditor means increase in assets and decrease in liability. Decrease in assets and decrease in liability. Decrease in assets and increase in liability.

Test: Ledgers - 1 - Question 26

What will be the total sales of the year 2008-09 for A Limited, if they provided following information:
Cash sales                               Rs.80,000
Cash collected from debtors    Rs.1,50,000
Bad debts during the year        Rs.10,000
Debtors at 1st April, 2008        Rs.15,000
Debtor at 31st March, 2009     Rs.10,000

Bad debts recovered                Rs 5000

Detailed Solution for Test: Ledgers - 1 - Question 26

Bad debts were 10000 but 5000 has been recovered so - 5000 from bad debts.

Now Bad debts + Cash sales + Amount received from Dr.= Total sale 5000 + 80000 + 150000 = 235000.

Test: Ledgers - 1 - Question 27

The technique of finding the net balance of an account after considering the totals of both debits and credits appearing in the account is known as 

Detailed Solution for Test: Ledgers - 1 - Question 27

Balancing of an accounts means ascertaining the net effect of the transactions, i.e. the difference between the debit and credit side of the ledger account. Thus, when the debit side of the ledger account exceeds the credit side, the balancing figure is termed as debit balance and vice versa. All the assets, expenses and losses show debit balance. Whereas, all liabilities, incomes and gains and capital show credit balance.

Test: Ledgers - 1 - Question 28

Ledger Book is popularly known as:

Detailed Solution for Test: Ledgers - 1 - Question 28

Ledger is known as the principal book of accounts or the chief book in which the financial information is classified by its nature and relevance.

Test: Ledgers - 1 - Question 29

J. F. means ___________

Detailed Solution for Test: Ledgers - 1 - Question 29

Correct Answer :- b

Explanation :The journal folio (JF), on the other hand, is the page number of your journal. Both the journal and ledger folio can be numeric or alphanumeric. They are listed in separate columns. 

Test: Ledgers - 1 - Question 30

The amount brought into the business by the proprietor should be credited to

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