Chapter 4: Ledger — Online MCQ Test
ACCOUNTANCY · CLASS 11th · Tamil Nadu State Board
Practice Chapter 4: Ledger with a free chapter-wise online MCQ test.
This chapter covers: Focusing on principal books of accounts this chapter details ledger posting techniques and account balancing processes. Students examine relationships between journal and ledger ac....
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Chapter 4: Ledger — Important Questions & Answers
The ledger is also known as the book of:
- A. Original entry
- B. Final entry
- C. Principal record
- D. Secondary entry
Answer: C. Principal record
Ledger is considered the principal book of accounts as it contains all sets of accounts for assets, liabilities, equity, revenue, and expenses.
Ledger is considered the principal book of accounts as it contains all sets of accounts for assets, liabilities, equity, revenue, and expenses.
Which side of the ledger account is used to record the 'To' entries?
- A. Debit side
- B. Credit side
- C. Both sides
- D. None of these
Answer: A. Debit side
In ledger accounts, the left-hand side is the debit side, where entries start with the prefix 'To'.
In ledger accounts, the left-hand side is the debit side, where entries start with the prefix 'To'.
Which of the following accounts usually shows a debit balance?
- A. Capital account
- B. Bank loan account
- C. Machinery account
- D. Creditors account
Answer: C. Machinery account
Assets like machinery normally show debit balances, whereas liabilities and capital show credit balances.
Assets like machinery normally show debit balances, whereas liabilities and capital show credit balances.
If a transaction is recorded on the debit side of the Cash account, in the corresponding account it will be recorded on:
- A. The debit side
- B. The credit side
- C. It will not be recorded
- D. The same side
Answer: B. The credit side
According to the double-entry system, every debit has an equal credit; if an account is debited, the other account must be credited.
According to the double-entry system, every debit has an equal credit; if an account is debited, the other account must be credited.
A firm has a debit balance in its Bank account. A cheque deposited is returned dishonoured. How will this be treated in the ledger?
- A. Debited to Bank account
- B. Credited to Bank account
- C. Debited to Sales account
- D. No entry required
Answer: B. Credited to Bank account
When a cheque is dishonoured, the Bank account must be credited to reverse the original debit entry recorded at the time of deposit.
When a cheque is dishonoured, the Bank account must be credited to reverse the original debit entry recorded at the time of deposit.