Question

Which of the following
statement is / are correct?
I. Reading of ledger
accounts is necessary
when the trial balance
does not agree and error is
to be found out. II.
Reading of ledger
accounts is necessary
when the accounts are to
be produced as evidence
in the court of law.
(a)Both are correct
(b)Both are incorrect
(c)Only I is correct
(d)Only Il is correct​

Answer 1

Answer:

C

Explanation:

I think it's C rate my answer

Answer 2

The correct option is option B

• Both the above sentences are incorrect
• While preparing books of accounts, a ledger book is prepared
• Accounting Entries are recorded in ledger accounts. Debit entries are made on the left side of the ledger account whereas Credit entries are made on the right side. Ledger accounts are maintained in respect of every component of the financial statements.
• For the preparation of the ledger, a trial balance is also prepared. Therefore the reading of the ledger is to be done irrespective of whether the trial balance has errors or does not balance
• The second statement is false because according to Section 34 of the Evidence Act, the reading of the ledger alone cannot be treated as evidence in a court of law. All the books of accounts including cash statements, payment receipt, stock ledger, balance sheet, and ledger books, in total, when maintained regularly can be admitted in a court as evidence, but to have collaborated