VERY SHORT ANSWER QUESTIONS
Q1. What is Ledger?
Ans: The book which contains a classified and permanent record of all the transactions of a business is called the Ledger.
Q2. Why is the Ledger called the book of Final entry?
Ans: The Ledger is called the book of final entry because it is the book in which all the business transactions would ultimately find their place.
Q3. Give one advantage of Ledger.
Ans: A trial balance can be prepared with the help of ledger balances which helps in ascertaining the arithmetical accuracy of the accounts.
Q4. Give one distinction between books of original entry and ledger.
|Journal or Books of Original Entry||Ledger|
All the transactions are first of all recorded in these books, i.e. journal or subsidiary books such as purchase book sales book etc.
All the transactions entered in journal or subsidiary books are later transferred to the Ledger.
Q5. What is J.F.?
Ans: Journal Folio or J.F. is the page number of the journal from where the posting has been transferred in the ledger. This page number of the journal is recorded in the ledger in J.F. column.
Q6. How the discount column of Cash book is posted?
Ans: The total of discount column on the Dr. side of the Cash Book is posted to the Dr. side of ‘Discount Allowed A/c’. Similarly, the total of discount column on the Cr. side of the Cash Book is posted to the Cr. side of ‘Discount Received A/c’.