Unit 2: Ledgers (Question With Answer) CA CPT Notes | EduRev

Principles and Practice of Accounting

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CA CPT : Unit 2: Ledgers (Question With Answer) CA CPT Notes | EduRev

The document Unit 2: Ledgers (Question With Answer) CA CPT Notes | EduRev is a part of the CA CPT Course Principles and Practice of Accounting.
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♦ Process of transferring journal entries in the accounts opened in Ledger is called posting.
♦ Ledger is known as principal books of accounts and it provides full information regarding all the transactions pertaining to any individual account.
♦ The difference between the totals of debits and credit sides is found out as the balance. Some of these balances are transferred to the profit and loss account and some are carried forward to the next year i.e., shown in the balance sheet, depending upon the nature of the account.

Multiple Choice Questions
Ques 1: 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
Ans: a
Ques 2: 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
(a) Posting
(b) Purchase
(c) Balancing of an account
Ans: c
Ques 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
Ans: a
Ques 4: Ledger book is popularly known as
(a) Secondary book of accounts
(b) Principal book of accounts
(c) Subsidiary book of accounts
Ans: b
Ques 5: 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) Not balanced and their balance is transferred to the profit and loss account.
Ans: c

Theory Questions
Ques 1: What do you mean by principal books of accounts?
Ans: Ledger is known as principal books of accounts and it provides full information regarding all the transactions pertaining to any individual account. Ledger contains all set of accounts (viz. personal, real and nominal accounts).

Ques 2: What are the rules of posting of journal entries into the Ledger?
Ans: Rules regarding posting of entries in the ledger:
a. Separate account is opened in ledger book for each account and entries from ledger posted to respective account accordingly.
b. It is a practice to use words 'To' and 'By' while posting transactions in the ledger. The word 'To' is used in the particular column with the accounts written on the debit side while 'By' is used with the accounts written in the particular column of the credit side. These 'To' and 'By' do not have any meanings but are used to the account debited and credited.
c. The concerned account debited in the journal should also be debited in the ledger but reference should be of the respective credit account.

Practical Questions
Ques 1: Journalize the following transactions, post them in the Ledger and balance the accounts on 31st December.
1. X started business with a capital of ₹ 20,000
2. He purchased goods from Y on credit ₹ 4,000
3. He paid cash to Y ₹ 2,000
4. He sold goods to Z ₹ 4,000
5. He received cash from Z ₹ 6,000
6. He further purchased goods from Y ₹ 4,000
7. He paid cash to Y ₹ 2,000
8. He further sold goods to Z ₹ 4,000
9. He received cash form Z ₹ 2,000
Ans:
Unit 2: Ledgers (Question With Answer) CA CPT Notes | EduRev Unit 2: Ledgers (Question With Answer) CA CPT Notes | EduRevUnit 2: Ledgers (Question With Answer) CA CPT Notes | EduRev

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