At the end of the accounting year all the nominal accounts of the ledger book are
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.
The process of transferring the debit and credit items from a Journal to their respective accounts in the ledger is termed as
Each journal item is transferred to the ledger in their respective account. It is termed as posting.
Journal and ledger records transactions in
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.
Which of the following accounts may have a debit or a credit balance?
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.
What will be the Journal Entry when goods purchased are returned?
Which of the following is known as “Principal Books of Accounts”?
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.
The credit balance of a personal account shows:
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.
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
150+100+30+50= 330. Interest amount is not included in the reimbursement
Ledger records transaction in :
The ledger posting is done through Jounal/Subsidiary Books where transaction are recorded date wise, so it is Chronological in nature
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
Which of the following is a real account?
Which of the following statement is correct?
b) ledger is not a part of subsidiary books, it is a part of principal or main books since a business man can find the final information relating to different accounts from it.
c) purchase book records only credit records.
d) bank column of cash books could have a credit balance in case of overdraft.
Now ultimately the option a is correct as we can record all transactions through journal except cash transactions,
Purchase Return Account always shows a _______ balance.
A purchase return account shows the credit balance. Purchase 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.
Discount Account will always have:
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.
Cash account is a :
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 :
Total sales= Cash sales+cash collected from debtors - (Debtors at beginning-Bad debts during year.
Which of these Account is Debited:
The miscellaneous expenses account is likely to have :
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.
Credit balance in ledger will be either:-
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?
The next step after preparation of Ledger is the preparation of ________:
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.
The process of transferring the transaction relating to changes in a particular item at one place in the form of an account is called __________:
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.
If the owner withdraws amount from the business for personal use, then which A/c is to be debited?
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:
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:-
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 were 10000 but 5000 has been recovered so -5000 from bed debts
Now Bed debts+ cash sales + amt.received from Dr.= totalsale 5000+80000+150000=235000
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
Ledger Book is popularly known as:
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.
J. F. means ___________
The amount brought into the business by the proprietor should be credited to