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LEDGER – THE KING OF ALL BOOKS OF ACCOUNT

MULTIPLE CHOICE QUESTIONS
Q.1

The book in which business transactions are recorded in classified form is:
(a)
Trial Balance
(b)
Ledger
(c)
Journal
(d)
Cash Book
Q.2 The function of ledger is:
(a)
Recording
(b)
Classification
(c)
Summarization
(d)
Interpretation
Q.3 A separate record for each account is maintained in:
(a)
Journal
(b)
Trial Balance
(c)
Ledger
(d)
None of these
Q.4 Sundry Debtors is the total of all balances on:
(a)
Sales Ledger
(b)
Bought Ledger
(c)
General Ledger
(d)
Private Ledger
Q.5 Double entry system is successfully applied through:
(a)
Trial Balance
(b)
Ledger
(c)
Journal
(d)
Cash Book
Q.6 The process of transferring data from journal to ledger is:
(a)
Recording
(b)
Journalizing
(c)
Posting
(d)
All of these
Q.7 Ledger is a book in which accounts are opened:
(a)
All Real
(b)
All Personal
(c)
All Nominal
(d)
All of these
Q.8 Ledger is also called:
(a)
Main Book of Entry
(b)
King of Books of Accounts
(c)
Both of these
(d)
None of these
Q.9 Difference between two sides of an account is:
(a)
Balance
(b)
Trial Balance
(c)
Zero Balance
(d)
All of these
Q.10 The act of comparing/ equalizing two sides of an account is:
(a)
Casting
(b)
Footing
(c)
Posting
(d)
Balancing
Q.11 If both the sides of an account are equal, then it will show:
(a)
Zero Balance
(b)
Debit Balance
(c)
Credit Balance
(d)
Opening Balance
Q.12 If debit side of an account is excess of its credit side, then it shows:
(a)
Credit Balance
(b)
Debit Balance
(c)
Zero Balance
(d)
Negative Balance
Q.13 Excess of credit over debit is called:

Q.14
Q.15
Q.16
Q.17
Q.18
Q.19
Q.20
Q.21
Q.22
Q.23
Q.24
Q.25
Q.26
Q.27
Q.28

(a)
Nil Balance
(b)
Debit Balance
(c)
Credit Balance
(d)
None of them
Debit balance of an account will be written on:
(a)
Credit side
(b)
Debit side
(c)
Both sides
(d)
None of these
Credit balance of an account will be written on:
(a)
Credit side
(b)
Debit side
(c)
Both sides
(d)
None of these
The balance which an A/C shows at the end of the year is called:
(a)
Opening Balance
(b)
Negative Balance
(c)
Zero Balance
(d)
Closing Balance
Balance of an account is always written on:
(a)
Credit side
(b)
Debit side
(c)
Smaller side
(d)
Larger side
The term posting is related with:
(a)
Day Book
(b)
Ledger
(c)
Journal
(d)
All of these
Book of analytical record is:
(a)
Trial Balance
(b)
Ledger
(c)
Journal
(d)
Cash Book
The simplest form of ledger is called:
(a)
Cash Account
(b)
Journal
(c)
T Account
(d)
Petty Cash Book
The ledger is the book for:
(a)
First entry
(b)
Second entry
(c)
Third entry
(d)
Fourth entry
Which is one of the columns of ledger?
(a)
Journal Folio
(b)
Ledger Folio
(c)
Petty Cash folio
(d)
Trial Balance Folio
Journal Reference is another name of:
(a)
Petty Cash folio
(b)
Ledger Folio
(c)
Journal Folio
(d)
Trial Balance Folio
The word “Balance c/d” is written with:
(a)
Opening Balance
(b)
Negative Balance
(c)
Zero Balance
(d)
Closing Balance
The word “Balance b/d” is written with:
(a)
Zero Balance
(b)
Negative Balance
(c)
Opening Balance
(d)
Closing Balance
Transactions are finally recorded in:
(a)
Journal
(b)
Ledger
(c)
Trial Balance
(d)
Balance Sheet
Ledger is called:
(a)
Book of first entry
(b)
Book of original entry
(c)
Book of final entry
(d)
Book of Prime entry
The word “To” is used before an account while making posting on:
(a)
Debit side of an account
(b)
Credit side of an account

Q.29
Q.30
Q.31
Q.32
Q.33
Q.34
Q.35
Q.36

Q.37
Q.38
Q.39
Q.40
Q.41
Q.42
Q.43

(c)
Both sides of an account
(d)
None of these
The word “By” is used before an account while making posting on:
(a)
Debit side of an account
(b)
Credit side of an account
(c)
Both sides of an account
(d)
None of these
Assets normally have:
(a)
Debit Balance
(b)
Credit Balance
(c)
Zero Balance
(d)
All of these
Revenue normally has:
(a)
Debit Balance
(b)
Credit Balance
(c)
Both of these
(d)
None of these
Expenses normally have:
(a)
Zero Balance
(b)
Credit Balance
(c)
Debit Balance
(d)
None of these
Capital normally has:
(a)
Debit Balance
(b)
Credit Balance
(c)
Both of these
(d)
None of these
Liabilities normally show:
(a)
Debit Balance
(b)
Credit Balance
(c)
Both of these
(d)
None of these
While balancing an account the difference of two sides is recorded on:
(a)
Credit side
(b)
Debit side
(c)
Smaller side
(d)
Larger side
An informal accounting statement that contains debit and credit balances of ledgers
is:
(a)
Trial Balance
(b)
Ledger
(c)
Journal
(d)
Cash Book
Summarize record of business transactions is called:
(a)
Ledger
(b)
Trial Balance
(c)
Journal
(d)
Balance Sheet
Statement prepared to check arithmetical accuracy of entries is called:
(a)
Journal
(b)
Ledger
(c)
Trial Balance
(d)
Cash Book
Standard form is used for:
(a)
Trial Balance
(b)
Ledger
(c)
Journal
(d)
Balance Sheet
The right hand side of an account is called:
(a)
Debit side
(b)
Credit side
(c)
Both of these
(d)
None of these
The left hand side of an account is called:
(a)
Debit side
(b)
Credit side
(c)
Both of these
(d)
None of these
Debit denotes: (Lahore Board 2006)
(a)
Left side of an account
(b)
Right side of an account
(c)
Both of these
(d)
None of these
A group of all the accounts of business enterprise is:
(a)
Trial Balance
(b)
Ledger

(c)
Journal
(d)
Balance Sheet
Q.44 Trial Balance shows: (Lahore Board 2008)
(a)
Complete accuracy
(b)
Whole accuracy
(c)
Arithmetical accuracy
(d)
Full accuracy
Q.45 Any mistake in ledger can be detected with the help of:
(a)
Trial Balance
(b)
Voucher
(c)
Journal
(d)
Balance Sheet

ANSWERS

1 (b)
6 (c)
11 (a)
16 (d)
21 (b)
26 (b)
31 (b)
36 (a)
41 (a)

2 (b)
7 (d)
12 (b)
17 (c)
22 (a)
27 (c)
32 (c)
37 (b)
42 (a)

3 (c)
8 (c)
13 (c)
18 (b)
23 (c)
28 (a)
33 (b)
38 (c)
43 (b)

4 (a)
9 (a)
14 (a)
19 (b)
24 (d)
29 (b)
34 (b)
39 (b)
44 (c)

5 (b)
10 (d)
15 (b)
20 (c)
25 (c)
30 (a)
35 (c)
40 (b)
45 (a)