Write the word, term, phrase, Which can substitute each of the following statement.
1) Transfer of a Journal entry from Journal to ledger.
2) Total of Debit side of an A/c is more than total of Credit side of an A/c.
3) Page number of ledger.
4) A book of an account in which all ledger accounts are maintained.
5) Left hand side of an account.
6) Right hand side of an account.
7) Types of accounts which are not balanced but transferred to Trading A/c or Profit & Loss A/c.
8) Bound book of accounts.
9) An account where total of Purchases Book is posted.
10) A statement of accounts prepared from the balances of ledger account.
Write the word, term, phrase, Which can substitute each of the following statement.
1) Transfer of a Journal entry from Journal to ledger.
2) Total of Debit side of an A/c is more than total of Credit side of an A/c.
3) Page number of ledger.
4) A book of an account in which all ledger accounts are maintained.
5) Left hand side of an account.
6) Right hand side of an account.
7) Types of accounts which are not balanced but transferred to Trading A/c or Profit & Loss A/c.
8) Bound book of accounts.
9) An account where total of Purchases Book is posted.
10) A statement of accounts prepared from the balances of ledger account.
(1) Transfer of a Journal entry from Journal to ledger- Posting
Explanation:
When a Journal entry is transferred or posted to the ledger account, this process is known as posting. All the transactions are firstly recorded in the Journal in the form of Journal entries and then transferred to their respective ledger accounts.
(2) Total of Debit side of an A/c is more than total of Credit side of an A/c- Debit Balance
Explanation:
When the total of debit side of an account is more than total of credit side of that account, then the balancing figure is termed as debit Balance. Balancing of an account means ascertaining the net effect of the transaction, i.e. the difference between the debit and credit side of the ledger account.
(3) Page number of ledger- Ledger Folio
Explanation:
Page number of a ledger account is known as Ledger Folio. It is the page number or folio number of the page where the posting has been made from the Journal. It is recorded in the L.F. column of the Journal.
(4) A book of an account in which all ledger accounts are maintained- Ledger
Explanation:
A ledger is a book of accounts that contains all the ledger accounts of the business, whether they are real, nominal or personal. All the entries from Journal are posted to their respective ledger accounts.
(5) Left hand side of an account- Debit Side
Explanation:
All accounts are divided into two sides. An account is often called a T-shape account, as it is in the T-shape format. The left side of an account is called debit side and it is written as 'Dr.'.
(6) Right hand side of an account- Credit Side
Explanation:
Every account is divided into two sides. The right side of an account is termed as credit side and it is written as 'Cr.'. It is often called a T-shape account, as it is in the T-shape format.
(7) Types of accounts which are not balanced but transferred to Trading A/c or Profit & Loss A/c- Nominal Accounts
Explanation:
Nominal accounts are the accounts that are not balanced and in order to close these accounts, the balance is transferred to the Trading and Profit and Loss A/c. Nominal accounts include all the accounts of income, gains, losses and expenses of a firm. Nominal accounts are not balanced and these are closed by transferring the balance to the Trading and Profit & Loss A/c.
(8) Bound book of accounts- Ledger
Explanation:
A ledger may be kept in the form of a bound register, cards or punched sheets in a loose leaf binder. Hence, a ledger is also known as a bound book of accounts.
(9) An account where total of Purchases Book is posted- Purchases A/c
Explanation:
Total of Purchases Book is posted on the debit side of Purchases A/c. A Purchases Book is a subsidiary book or a sub division of Journal. Thus, all the entries related to the credit purchases of goods are first recorded in Purchases Book and then the posting is made to the respective ledger accounts. Thus, Purchases A/c is the account where the total of Purchases Book is posted.
(10) A statement of accounts prepared from the balances of ledger account- Trial Balance
Explanation:
Trial Balance is a statement of accounts that is prepared from the balances of ledger accounts. It is prepared in order to check the arithmetical accuracy of the accounts. It shows the summary of debit and credit balances of all ledgers accounts and helps in the preparation of financial statements of the business.
(1) Transfer of a Journal entry from Journal to ledger- Posting
Explanation:
When a Journal entry is transferred or posted to the ledger account, this process is known as posting. All the transactions are firstly recorded in the Journal in the form of Journal entries and then transferred to their respective ledger accounts.
(2) Total of Debit side of an A/c is more than total of Credit side of an A/c- Debit Balance
Explanation:
When the total of debit side of an account is more than total of credit side of that account, then the balancing figure is termed as debit Balance. Balancing of an account means ascertaining the net effect of the transaction, i.e. the difference between the debit and credit side of the ledger account.
(3) Page number of ledger- Ledger Folio
Explanation:
Page number of a ledger account is known as Ledger Folio. It is the page number or folio number of the page where the posting has been made from the Journal. It is recorded in the L.F. column of the Journal.
(4) A book of an account in which all ledger accounts are maintained- Ledger
Explanation:
A ledger is a book of accounts that contains all the ledger accounts of the business, whether they are real, nominal or personal. All the entries from Journal are posted to their respective ledger accounts.
(5) Left hand side of an account- Debit Side
Explanation:
All accounts are divided into two sides. An account is often called a T-shape account, as it is in the T-shape format. The left side of an account is called debit side and it is written as 'Dr.'.
(6) Right hand side of an account- Credit Side
Explanation:
Every account is divided into two sides. The right side of an account is termed as credit side and it is written as 'Cr.'. It is often called a T-shape account, as it is in the T-shape format.
(7) Types of accounts which are not balanced but transferred to Trading A/c or Profit & Loss A/c- Nominal Accounts
Explanation:
Nominal accounts are the accounts that are not balanced and in order to close these accounts, the balance is transferred to the Trading and Profit and Loss A/c. Nominal accounts include all the accounts of income, gains, losses and expenses of a firm. Nominal accounts are not balanced and these are closed by transferring the balance to the Trading and Profit & Loss A/c.
(8) Bound book of accounts- Ledger
Explanation:
A ledger may be kept in the form of a bound register, cards or punched sheets in a loose leaf binder. Hence, a ledger is also known as a bound book of accounts.
(9) An account where total of Purchases Book is posted- Purchases A/c
Explanation:
Total of Purchases Book is posted on the debit side of Purchases A/c. A Purchases Book is a subsidiary book or a sub division of Journal. Thus, all the entries related to the credit purchases of goods are first recorded in Purchases Book and then the posting is made to the respective ledger accounts. Thus, Purchases A/c is the account where the total of Purchases Book is posted.
(10) A statement of accounts prepared from the balances of ledger account- Trial Balance
Explanation:
Trial Balance is a statement of accounts that is prepared from the balances of ledger accounts. It is prepared in order to check the arithmetical accuracy of the accounts. It shows the summary of debit and credit balances of all ledgers accounts and helps in the preparation of financial statements of the business.
