MCQs on Ledger

A ledger in accounting refers to a book that contains accounts that consisting of records of transactions taking place in the business. It is also known as the book of final entry or principal book of accounts. It is a book where all transactions related to the ledgers are posted.

Following are some of the multiple choice questions and answers on ledger, that will help the students in brushing up their understanding of the concept of ledger in accounting.

1. A ledger is called a book of.

(a) Primary entry

(b) Final entry

(c) Original entry

(d) None of the above

Answer: b

2. From which of the following is a ledger account prepared.

(a) Transactions

(b) Journal

(c) Events

(d) None of the above

Answer: b

3.The process of transferring of items from a journal to their respective ledger accounts is called as.

(a) Entry

(b) Arithmetic

(c) Balancing

(d) Posting

Answer: d

4. The ledger column that links the entry with the journal is called as.

(a) J.F column

(b) L.F column

(c) Credit column

(d) Debit column

Answer: a

5. The left hand side of the ledger account is referred to as.

(a) Footing

(b) Credit side

(c) Debit side

(d) Balance

Answer: c

6. Ledger is a principal book that contains.

(a) Real accounts only

(b) Personal accounts only

(c) All accounts

(d) Nominal accounts only

Answer: c

7. Accounts that have credit balance are closed by using the statement.

(a) By balance b/d

(b) By balance c/d

(c) To balance b/d

(d) To balance c/d

Answer: d

8. An account is having debit balance is established when.

(a) The last entry of the accounting period was posted on the debit side

(b) The amount of debit exceeds the amount of the credits

(c) There are more entries on the debit side than on the credit side

(d) None of above

Answer: b

9. Which of the following item will be appearing on the credit side of the ledger account?

(a) Discount received

(b) Cash received

(c) Rent Expenses

(d) Purchases

Answer: a

10. Among these, which item is used as the base for preparing trial balance?

(a) Cash account

(b) Balance sheet

(c) Journal

(d) Ledger account

Answer: d

This article deals with MCQs on Ledger. For more such interesting MCQs on various Commerce topics, visit here

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