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The concerned account debited in the journal should be
- a)Debited in the ledger but reference should be of the respective credit account.
- b)Credited in the ledger but reference should be of the respective debit account.
- c)Credited in the ledger and reference should also be of the respective credit account
- d)Debited in the ledger and reference should also be of the respective debit account
Correct answer is option 'A'. Can you explain this answer?
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The concerned account debited in the journal should bea)Debited in the...
The concerned account debited in the journal should be debited in the ledger but the reference should be of the respective credit account.
Explanation:
When a transaction is recorded in the journal, it is initially recorded in a chronological order. However, for a transaction to be properly recorded in the ledger, it needs to be classified into its respective accounts. This process is called posting.
In accounting, there are two sides to every transaction - a debit side and a credit side. The debit side represents the increase in assets or expenses and the decrease in liabilities or equity, while the credit side represents the increase in liabilities or equity and the decrease in assets or expenses.
When a transaction is recorded in the journal, the concerned account is debited in the ledger. This means that the amount is recorded on the debit side of the concerned account in the ledger. However, the reference for this entry should be made to the respective credit account.
For example, let's say a company purchases inventory on credit. In the journal, the entry would be recorded as:
Inventory (Debit) xxx
Accounts Payable (Credit) xxx
When posting this entry to the ledger, the concerned account, which is Inventory in this case, would be debited in the ledger. The amount would be recorded on the debit side of the Inventory account. However, the reference for this entry should be made to the respective credit account, which is Accounts Payable in this case.
This is done to maintain the double-entry bookkeeping system, where every debit entry must have an equal and opposite credit entry. By referencing the respective credit account, it ensures that the two sides of the transaction are properly linked and balanced.
Therefore, the correct answer is option 'A' - the concerned account should be debited in the ledger, but the reference should be of the respective credit account.
Explanation:
When a transaction is recorded in the journal, it is initially recorded in a chronological order. However, for a transaction to be properly recorded in the ledger, it needs to be classified into its respective accounts. This process is called posting.
In accounting, there are two sides to every transaction - a debit side and a credit side. The debit side represents the increase in assets or expenses and the decrease in liabilities or equity, while the credit side represents the increase in liabilities or equity and the decrease in assets or expenses.
When a transaction is recorded in the journal, the concerned account is debited in the ledger. This means that the amount is recorded on the debit side of the concerned account in the ledger. However, the reference for this entry should be made to the respective credit account.
For example, let's say a company purchases inventory on credit. In the journal, the entry would be recorded as:
Inventory (Debit) xxx
Accounts Payable (Credit) xxx
When posting this entry to the ledger, the concerned account, which is Inventory in this case, would be debited in the ledger. The amount would be recorded on the debit side of the Inventory account. However, the reference for this entry should be made to the respective credit account, which is Accounts Payable in this case.
This is done to maintain the double-entry bookkeeping system, where every debit entry must have an equal and opposite credit entry. By referencing the respective credit account, it ensures that the two sides of the transaction are properly linked and balanced.
Therefore, the correct answer is option 'A' - the concerned account should be debited in the ledger, but the reference should be of the respective credit account.
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The concerned account debited in the journal should bea)Debited in the...
Debit remains debit and credit remains credit ,debit and credit also not change.
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The concerned account debited in the journal should bea)Debited in the ledger but reference should be of the respective credit account.b)Credited in the ledger but reference should be of the respective debit account.c)Credited in the ledger and reference should also be of the respective credit accountd)Debited in the ledger and reference should also be of the respective debit accountCorrect answer is option 'A'. Can you explain this answer?
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