Ledger Questions and Answers AP Inter 1st Year Accounts Chapter 5

Regular practice with AP Inter 1st Year Accounts Study Material Chapter 5 Ledger Questions and Answers helps students stay prepared for examinations.

AP Inter 1st Year Accountancy 5th Lesson Ledger Questions and Answers

I. Fill in the blanks

Question 1.
……… is also called “Book of Secondary Entry”.
Answer:
Ledger

Question 2.
J. F means ……
Answer:
Journal Folio

Question 3.
The book which contains all the set of accounts is called …….
Answer:
Ledger

Question 4.
The left-hand side of an account is known as the …… side.
Answer:
Debit

Question 5.
The right-hand side of an account is known as the …… side.
Answer:
Credit

Question 6.
The process of transferring the entries recorded in the Journal (or) Subsidiary books to the respective accounts opened in the ledger is called ………….
Answer:
Posting

Question 7.
The difference between the debit and Credit totals of an account is known as the …… of an account.
Answer:
Balance

Question 8.
The excess of the Debit total over the credit total is called the …….. balance
Answer:
Debit

Question 9.
The excess of Credit total over the Debit total is called the ……. balance
Answer:
Credit

Question 10.
……… is known as the Principal Book of account.
Answer:
Ledger

II. Very Short Answer Type Questions 

Question 1.
What is a ledger?
Answer:
Ledger is a book which facilitates recording of all types of transactions related to Personal, Real and Nominal accounts separately in related accounts. In other words, the group of accounts recorded in a book is called ‘Ledger’. Ledger is also called ‘Book of Final Entry’.

Question 2.
What is a posting?
Answer:
The process of transferring the entries recorded in the journal or subsidiary books to the respective accounts opened in the ledger is called ‘Posting’. It is also process of grouping of all the transactions relating to a particular account at one place.

Question 3.
What do you mean by balancing of an account?
Answer:
Balancing means the writing of the difference between the amount columns of the two sides in the ledger (smaller total) side, so that the totals of the two sides become equal.

Question 4.
What is debit balance?
Answer:
The excess of debit total over the credit total is called the debit balance.

Question 5.
What is credit balance?
Answer:
The excess of credit total over the debit total is called the credit balance.

III. Short Answer Type Questions

Question 1.
Define the ledger and explain the advantages of a ledger.
Answer:
Ledger is a book which facilitates recording of all types of transactions related to Personal, Real and Nominal. All the debit and credit aspects which are recorded in the journal are transferred to the respective accounts in the ledger.

According to L.C.Cropper, “the book which contains a classified and permanent record of all transactions of a business is called the Ledger”.

Advantages : The following are the advantages of ledger.

1. Complete information at a glance : All the transactions pertaining to an account are collected at one place in the ledger. By looking at the balance of that account, one can understand the collective effect of all such transactions at a glance.
2. Arithmetical accuracy : With the help of ledger balances. Trial balance is prepared to know the arithmetical accuracy of accounts.
3. Result of business operations : It facilitates the preparation of final accounts for ascertaining the operating result and the financial position of the business concern.
4. Accounting information : The data supplied by various ledger accounts are summarized, analyzed and interpreted for obtaining various accounting information.

Question 2.
What do you mean by posting? Explain the rules relating to posting.
Answer:
The process of transferring the entries recorded in the journal or subsidiary books to the respective accounts opened in the ledger is called ‘Posting’. In other words, posting means process of grouping of all the transactions relating to a particular account at one place.
Rules : Following steps should be taken into account while making posting.

A) Opening of separate accounts : Each transaction affects minimum two accounts for which separate accounts are to be opened in the ledger. All transactions relating to an account, debit as well as credit, are to be posted to know the net position of the account.

B) Posting journal entry to concerned side : If an account is debited in the journal, posting will be made on the debit side of the account in the ledger. Similarly, if an account is credited in the journal, that account would be credited in the ledger.

C) Use of word “To” and “By” : While writing the debit side, commence with word “To” and write the name of the account, which is credited in the journal. Write the word “By” on the credit side before writing the name of the account that is debited in the journal.

D) Balance in account: The difference between debit and credit totals of an account is the net position of the account, known as balance of the account.

Problems

Question 1.
Journalise the following transactions of Geetha Traders and post the entries to the Ledger.

Answer:

Question 2.
Prepare Balaji’s a/c from the following transactions.

Answer:

Question 3.
Prepare Varan’s a/c from the following details.

Answer:

Question 4.
Prepare Leela’s a/c from the following transactions.

Answer:

Question 5.
Prepare Rahul’s account from the following transactions.

Answer:

Question 6.
Prepare Krishna’s a/c from the following transactions.

Answer:

Question 7.
Prepare Akhila’s a/c from the transactions given below.

Answer:

Question 8.
Prepare machinery account from the following

Answer:

Question 9.
Prepare Chandra account from the following particulars

Answer:

Question 10.
Prepare Charan account from the following

Answer: