Maharashtra Board 11th BK Important Questions Chapter 4 Ledger

Balbharti Maharashtra State Board 11th Commerce Book Keeping & Accountancy Important Questions Chapter 4 Ledger Important Questions and Answers.

Maharashtra State Board 11th Commerce BK Important Questions Chapter 4 Ledger

1. Answer in one sentence only.

Question 1.
State the meaning of ‘Debit Balance’.
Answer:
Excess of the debit total of an account over its credit total is called debit balance.

Question 2.
What do you mean by Credit Balance?
Answer:
Excess of credit total of an account over its debit total is called credit balance.

Question 3.
What is the balance of Outstanding Salary A/c?
Answer:
The balance of Outstanding Salary A/c is a credit balance.

Question 4.
What is the balance of Cash A/c?
Answer:
The balance of Cash A/c is always a debit balance.

Question 5.
Where is the balance of Salaries A/c transferred at the end of the year?
Answer:
At the end of the year, the balance of Salaries A/c is transferred to Profit and Loss A/c.

Question 6.
From which books of accounts posting is made in the Ledger?
Answer:
From Journal and Subsidiary books posting is made in the ledger.

Question 7.
What do you mean by the head of an Account?
Answer:
The name of the account which is written on the top of the ledger account in the middle is called “Head of an account”.

2. Write the word, term, phrase, which can substitute each of the statements.

Question 1.
A bound book of Account.
Answer:
Ledger

Question 2.
The credit balance of the Bank Account.
Answer:
Bank Overdraft

Question 3.
Recording of transactions from Journal to Ledger.
Answer:
Ledger Posting

Question 4.
Page number of Ledger.
Answer:
L.F. No.

Question 5.
The right-hand side of an account.
Answer:
Credit Side

Question 6.
The left-hand side of an account.
Answer:
Debit Side

Question 7.
Excess of a debit total of an account over its credit total.
Answer:
Debit Balance

Question 8.
Excess of credit total of an account over its debit total.
Answer:
Credit Balance

Question 9.
A secondary book of account in which entries are recorded from Journal or Subsidiary books.
Answer:
Ledger

Question 10.
Page of the account book.
Answer:
Folio

Question 11.
A book of accounts in which all ledger accounts are maintained.
Answer:
Ledger

Question 12.
Type of accounts that are not balanced but transferred to Trading Account or P/L A/c.
Answer:
Nominal Accounts

Question 13.
An account where the total purchase book is posted.
Answer:
Purchases Account

Question 14.
A statement of accounts’s prepared from the balances of the ledger account.
Answer:
Trial Balance

3. Select appropriate alternatives from those given below and rewrite the sentences.

Question 1.
_______________ is the act of transferring an entry from journal to ledger.
(a) Journalising
(b) Casting
(c) Balancing
(d) Posting
Answer:
(d) Posting

Question 2.
Cash account always shows _______________ balance.
(a) Credit
(b) Negative
(c) Minus
(d) Debit
Answer:
(d) Debit

Question 3.
Bank overdraft means _______________ balance of Bank A/c.
(a) Debit
(b) Credit
(c) Positive
(d) Nil
Answer:
(b) Credit

Question 4.
Real accounts generally shows _______________ balance.
(a) Debit
(b) Credit
(c) Negative
(d) Nil
Answer:
(a) Debit

Question 5.
Excess of debit total of an account over it’s credit total indicates _______________ balance.
(a) Negative
(b) Positive
(c) Debit
(d) Credit
Answer:
(c) Debit

Question 6.
When goods are sold on credit _______________ account is credited.
(a) Buyer’s A/c
(b) Cash A/c
(c) Sales A/c
(d) Seller’s A/c
Answer:
(c) Sales A/c

Question 7.
When the total of debit side of an account exceeds credit side, it is called _______________ balance.
(a) Debit
(b) Credit
(c) Nil
(d) Real
Answer:
(a) Debit

Question 8.
Machinery A/c shows _______________ balance.
(a) Credit
(b) Debit
(c) Positive
(d) Negative
Answer:
(b) Debit

Question 9.
Left hand side of an account is called _______________
(a) Credit
(b) Debit
(c) Middle
(d) Centre
Answer:
(b) Debit

Question 10.
_______________ is prepared from the balances in the ledger accounts.
(a) List
(b) Journal
(c) Book
(d) Trial Balance
Answer:
(d) Trial Balance

Question 11.
Total of Sales book is _______________ to sales account.
(a) entered
(b) moved
(c) posted
(d) given
Answer:
(c) posted

Question 12.
Wages A/c is transferred to _______________ A/c.
(a) Trading A/c
(b) Profit & Loss A/c
(c) Trial Balance
(d) Any
Answer:
(a) Trading A/c

Question 13.
All entries are posted from Journal to _______________
(a) Ledger
(b) Balance Sheet
(c) Trial Balance
(d) Cash A/c
Answer:
(a) Ledger

4. State whether the following statements are ‘True or False’ with reasons.

Question 1.
Ledger accounts are balanced every day.
Answer:
This statement is False.
Ledger accounts are balanced on a particular period of time or on the accounting year of the firm. They are not balanced every day.

Question 2.
Every account is divided into two sides.
Answer:
This statement is True.
Every account is divided into two sides i.e. Debit and Credit to do ledger pasting from a journal which follows the rules of double-entry book-keeping.

Question 3.
The discount allowed is a real account.
Answer:
This statement is False.
Discount allowed is an expense for the business. All expenses come under the Nominal account. So the discount allowed is a Nominal account.

Question 4.
The bank is a Nominal A/c.
Answer:
This statement is False.
A bank is an Artificial person created by law. The bank is personal accounts.

Question 5.
Accounts of expenses may show a credit balance.
Answer:
This statement is False.
Accounts of expenses always show debit balance. They fall under the nominal account and its Golden rule is to Debit all Expenses.

Question 6.
A Debtors A/c always show a credit balance.
Answer:
This statement is False.
A Debtor A/c always shows a Debit balance. The debtor is a personal account and as per the rule of personal account Debit the receiver.

Question 7.
When goods are sold for cash, the personal a/c of the buyer is debited.
Answer:
This statement is False.
In a cash transaction, there is no Personal A/c. The personal account comes in a credit transaction. So when goods are sold for cash, the cash account is debited. A cash account is a real account and as per rule debit what comes in.

Question 8.
Capital a/c is a nominal a/c.
Answer:
This statement is False.
Capital is a Personal account. Capital is the amount invested by the proprietor in his business. A proprietor is a person. Capital is also personal A/c.

Question 9.
Drawing a/c is a personal a/c.
Answer:
This statement is True.
Drawings mean cash or goods withdrawn by the proprietor for his personal or family use he is a person. So drawing is personal A/c.

Question 10.
Narration is not necessary for a ledger.
Answer:
This statement is False.
Narration is necessary for a Journal book and not in Ledger. Ledgers are self-narrative as every ledger has headed.

Question 11.
All a/c’s are closed down at the end of the accounting year.
Answer:
This statement is True.
All ledger accounts are closed an accounting year or Financial year to prepare the Trial balance and Financial statements of the year.

Question 12.
Recording of a transaction in the journal is called posting.
Answer:
This statement is False.
The process of recording a transaction in the Journal is called Journalising. Posting means transferring journal entries to respective ledger accounts.

Question 13.
Balance of personal a/c is brought down for the next year.
Answer:
This statement is True.
Personal accounts are the account of Debtors or Creditors. The business has to collect or pay amounts on personal accounts. Current year collections or payments are done in the following year. So balances of personal accounts are brought for the next year.

Question 14.
All transactions are recorded directly in the ledger.
Answer:
This statement is False.
First, every transaction is recorded in a Journal book or Subsidiary book and from there they are posted to respective ledger accounts. No transaction can be recorded directly in the ledger.

Question 15.
Ledger Folio and index are necessary for the ledger.
Answer:
This statement is True.
The index is necessary to final particular account on its page number and ledger folio number is also necessary for cross-checking with the journal book. This makes handling convenient and easier.

Question 16.
Ledger posting is not necessary for journal proper.
Answer:
This statement is False.
Ledger posting is necessary for journal proper. From Ledger trial balance and financial statements are prepared for the accounting year. Without posting of journal proper Trial balance and financial statements will not be tally and can’t give true and fair accounting.

Question 17.
Ledger Folio is recorded in the journal.
Answer:
This statement is True.
Ledger folio is a page of the ledger, where posting is made from a journal book. For cross-reference, the ledger folio is recorded in the journal.

Question 18.
Ledger posting is made before journal entry.
Answer:
This statement is False.
Ledger posting is made after journal entry. First, all transactions are recorded to Journal and from the journal, posting is made to Ledger.

5. Fill in the blanks.

Question 1.
Debtors A/c shows _______________ balance.
Answer:
Debit

Question 2.
Left hand side of an account is called _______________ side.
Answer:
Debit

Question 3.
_______________ is prepared from the balances in the Ledger A/c.
Answer:
Trial Balance

Question 4.
Total of salary A/c is transfered to _______________ A/c.
Answer:
Profit and loss A/c

Question 5.
b/d (brought down) balance indicates _______________ balance.
Answer:
Opening

Question 6.
_______________ Balance on Nominal Account shows Inconies or gains.
Answer:
Credit

Question 7.
Debtors A/c shows _______________ balance.
Answer:
Debit

Question 8.
Drawing A/c shows _______________ balance.
Answer:
Debit

Question 9.
Wages A/c balance transferred to _______________ A/c.
Answer:
Profit and Loss

Question 10.
Discount allowed shows _______________ Balance.
Answer:
Debit

Question 11.
Dividend received shows _______________ Balance.
Answer:
Credit

Question 12.
Ledger is the _______________ book of Accounts.
Answer:
Principal

6. Complete the following table.

Question 1.

Answer:
Credit balance

Question 2.

Answer:
Ledger

Question 3.

Answer:
Credit Balance

Question 4.

Answer:
Livestock A/c

Question 5.

Answer:
Output GST

7. Put ‘✓’ mark for the nature of balance for the following.

Question 1.

Account	Dr. Balance	Cr. Balance
1. Salary A/c
2. Purchase A/c
3. Sales Return A/c
4. Machinery A/c
5. Bank Balance A/c
6. Cash Balance A/c
7. Sale A/c
8. Purchase Return A/c
9. Bills Payable A/c
10. Debtors A/c
11. Creditors A/c
12. Stationery A/c
13. Furniture A/c
14. Amit’s Loan A/c

Answer:

Account	Dr. Balance	Cr. Balance
1. Salary A/c	✓
2. Purchase A/c	✓
3. Sales Return A/c	✓
4. Machinery A/c	✓
5. Bank Balance A/c	✓
6. Cash Balance A/c	✓
7. Sale A/c		✓
8. Purchase Return A/c		✓
9. Bills Payable A/c		✓
10. Debtors A/c	✓
11. Creditors A/c		✓
12. Stationery A/c	✓
13. Furniture A/c	✓
14. Amit’s Loan A/c		✓