Question

MCQS
(ii) A Ledger Account is prepared from
a.
events.
b. transactions.
C. Journal
d. None of these.


(iii) The Trial Balance shows
a. both debit and credit balances.
b. only debit balance.
c. only credit balance.
d. None of these.


(iv) Business transactions are recorded
a. in chronological order.
b. weekly
C. at the end of the month.
d. Any of these
(v)Ledger is a book in which:
a. Real and Nominal Accounts are maintained
b. Real and Personal Accounts are maintained.
c. Real, Personal and Nominal Accounts are maintained
d. None of the above.​

Answer 1

The answers are as follows-

(ii) A Ledger Account is prepared from the journal. (Option c)

• Once the entries are posted in the journal, they are further accounted for in the ledger under different accounts.

(iii) The Trial Balance shows both debit and credit balances. (Option a)

• The total of the credit and debit sides refers to the accuracy of the ledger accounts.

(iv) Business transactions are recorded in chronological order. (Option a)

• The books are maintained as and when transactions are entered into and done in a chronological way.

(v) Ledger is a book in which Real, Personal and Nominal Accounts are maintained. (Option c)

• All the types like creditor's account, asset account, interest account are included in it.