3X2=6
6. Write the format of ledger account.
7. What do you mean by ledger?
8. “Purchased machinery on credit from Harish" Name
the two accounts that have to prepared for the
above transaction while preparing ledger account
and also mention which account has to be debited
and which account has to be credited
HII SHORT QUESTIONS
3X3=9
9. Differentiate journal with ledger (minimum five points)
Answers
Answer:
Ans1: A general ledger account has two sides debit (left part of the account) and credit (right part of the account). Each of the general ledgers debit and credit side has four columns.
Ans2: A ledger is a book containing accounts in which the classified and summarized information from the journals is posted as debits and credits. ... The ledger contains the information that is required to prepare financial statements. It includes accounts for assets, liabilities, owners' equity, revenues and expenses.
Answer 3 is in attachment.
Ans4: The journal is the first step of the accounting cycle because all transactions are analyzed and recorded as journal entries. The ledger is an extension of the journal where journal entries are marked by the company and its general ledger account based on which of the financial statements the company has prepared.
Answer:
your half answer are at the top ... now if you combine the both answer you understand it properly......
1. Journal is a subsidiary book of account. It is the storehouse for recording transactions. Ledger is the permanent and final book of accounts. It is termed as the means of classified transactions.
2. Transactions are recorded in the journal in chronological order of dates just after their occurrences. Transactions are posted in the ledger in classified form from the journal.
3. Transactions are recorded in a journal without considering their nature of classification. Transactions are recorded in the ledger in the classified form under respective heads of accounts.
4. In journal explanation of entries of the transaction are shown. In ledger explanations of entries of transactions are not needed.
5. The format of the journal contains five columns.
Generally, the ledger account of the ‘T’ form contains eight columns – four in left and four in the right.
But in statement format of ledger account contains six columns.
6. Journal helps in preparing ledger accounts correctly. The object of the ledger is to know the income and expenditures of different heads.
7. Transactions are recorded in the journal in chronological order of dates. Ledger is prepared according to the nature of accounts.
Explanation: