CA-CPT Fundamentals of Accounts
Chapter 2 Unit-2
By CA. SK Chhabra
What are
ledgers
After recording the
transaction in the Journal
recorded transaction are
classified and grouped into
accounts known as ledger.
Ledger is an account book
which contains all account
heads, which are opened in
Journal/Subsidiary books
Helps to identify the list of transactions under
a particular account head and helps in
ascertaining the status of the account
For example cash A/c contains all
transactions involving cash
Principal Book
Secondary Book of entry
Book of Final entry
DATE
PARTICULARS J.F
`
DATE
PARTICULARS J.F.
`
It Refers to
transferring the
debit and credit
item from Journal to
classified accounts
in the ledger is
known as posting.
Balancing of an
account
Chronological
order
Principal books
of accounts
• The technique of finding the net balance of an
account after considering the total of both
debit and credit appearing in the account
• Journal and Ledger records transaction in a
chronological order that is in date wise
manner
• Ledger book is popularly known as principal
book of accounts and records transactions in
analytical order respectively
Multiple choice Questions
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
• (d) Arithmetically accuracy test
Answer: (a)
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
• (d) Arithmetically accuracy test.
Answer: (c)
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
• (d) An analytical order only
Answer: (a)
Ledger book is popularly known as
• (a) Secondary book of accounts
• (b) Principal book of accounts
• (c) Subsidiary book of accounts
• (d) None of the above
Answer: (b)
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) Balanced and the balance is transferred to the balance
sheet
• (d) Not balanced and their balance is transferred to the profit
and loss account
Answer: (d)
Ledger Book is known as:
• (a) Secondary book of accounts
• (b) book of original entry
• (c ) Subsidiary book of accounts
• (d) None
Answer: (a)
The Process of transferring the transactions relating to changes
in a particular item at one place in the form of an account is
called
• (a) Balancing
• (b) Casting
• (c) Journalizing
• (d) Posting
Answer (d)
Cash Sales
Rs.50,000
Cash Collected from Debtors
Rs.1,30,000
Bad Debts during year
Rs.5,000
Debtors at end
Rs.10,000
Total Sales will be as this is the first year of the business:•(a) Rs.1,95,000
•(b) Rs.1,70,000
•(c) Rs.1,80,000
•(d) Rs.1,78,000
Answer: (a)
if total of debit side exceed the credit side we
have a
•Debit balance
•Credit balance
•Income
•Loss
Answer: Debit balance
Cash a/c will show
•(a) Debit or credit balance
•(b) Debit balance
•(c) Credit balance
•(d) None
Answer: (b) Debit balance
Generally the balance of capital a/c is
•Credit balance
•Debit balance
•Zero balance
•None
Answer: Credit balance
Nominal credit balance indicate
•Income
•Expense
•Asset
•liability
Answer: Income
In a ledger a/c of creditor, the closing balance
will appear on
• (a) Dr side
• (b) Cr side
• (c) No balance
• (d) None of these
Answer: (a) Dr side
Ledger is
•(a) Book of prime entry
•(b) Principal book
•(c) Subsidiary book
•(d) Journal proper
Answer: (b) Principal book
Which of the following a/c will always have a
debit balance
• (a) Cash
• (b) Bank
• (c) Discount
• (d) None
Answer: (a) Cash
Normally the following accounts are balanced
• (a) Real a/c and nominal a/c
• (b) Personal a/c and real a/c
• (c) Only nominal a/c
• (d) All accounts
Answer: (b) Personal and Real a/c