Ledger records transaction in :a) Analytical orderb) A chronological orderc) Both of the aboved) NoneCorrect answer is option 'B'. Can you explain this answer?

Question

Answer

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.

Answer

Answer: (b) Analytical order

Description: The financial information in a ledger is recorded as classified by its nature and relevance. The transactions are recorded in an account form i.e. all transactions of same nature at one place. This gives it an analytical character and hence can be said that ledger records transactions in an analytical order.

Thank You.

Answer

Ledger records transaction in a chronological order.

Explanation:
A ledger is a book of accounts that contains all the transactions of a business. It is a principal book of accounting that provides a complete record of all financial transactions. The ledger is maintained in a chronological order, which means that transactions are recorded in the order in which they occur. The chronological order of recording transactions in the ledger is important because it helps in the following ways:

1. Easy to locate transactions: When transactions are recorded in a chronological order, it becomes easy to locate a particular transaction. This is because all the transactions are recorded in the order in which they occurred, which makes it easy to find a particular transaction.

2. Helps in identifying trends: When transactions are recorded in a chronological order, it becomes easy to identify trends in the business. This is because the ledger provides a complete record of all financial transactions, which can be used to analyze the financial performance of the business over a period of time.

3. Facilitates auditing: When transactions are recorded in a chronological order, it becomes easy for auditors to verify the accuracy of the financial statements. This is because the auditors can easily trace the transactions from the ledger to the financial statements.

Conclusion:
In conclusion, the ledger records transactions in a chronological order, which is an important aspect of accounting. This helps in easy location of transactions, identifying trends, and facilitates auditing.

Answer

Answer : Option C) both: chronological order and Analytical order also.
Explanation: Firstly, transactions are posted from Journal to Ledger. And this process is in chronological order it means we record the transactions date wise.
And this is also true that it is recorded in the form of account. It maintains all transactions of same nature at one place. So, it's We can also say that Ledger records transactions in Analytical order.
From this we can conclude that the answer is C) both.
I hope this is helpful.

Thank u

Answer

Yes,  ledger record transactions in chronological order because they are recorded from journal entry in which transactions are written in the order they entered .i.e chronological order.

Similar Commerce Doubts

Journal and ledger records transactions in

Journal and ledger records transactions in

Journal and ledger records transactions in

Should a transaction be first recorded in journal or ledger ?why?

Top Courses for CommerceView all

Chapter Notes for Commerce

Economics Class 12

Economics Class 11

NCERT Books & Solutions for Commerce

Economics for CBSE Class 12 Board Examinations

Top Courses for Commerce

Top Courses for Commerce

Related Content

Commerce Courses

Other Courses

How To Prepare?

Related Exams

Company