A Ledger is a record of financial transactions. It can be either manual or electronic. A Ledger typically includes the date of the transaction, the amount of money involved, and the party responsible for the transaction. Ledgers are used to track financial activity and ensure accuracy and accountability.

What are some common Ledger entries?

Common Ledger entries include cash receipts, cash payments, credit card charges, and bank deposits.

What is the purpose of a Ledger?

The purpose of a Ledger is to track financial activity and ensure accuracy and accountability. It can be used to verify that transactions have occurred, calculate Financial Statements, and investigate possible financial fraud.

How do I create a Ledger?

There are many different ways to create a Ledger. You can use a manual system, such as a notebook, or an electronic system, such as a spreadsheet. You can also use specialized software to create and manage your ledger.

What is the difference between a Ledger and a Balance Sheet?

A Ledger is a record of financial transactions, while a balance sheet summarizes a company's financial position. A Balance Sheet includes total assets, total liabilities, and net worth.

General Ledger MCQ Quiz With Answers

Take this quick test on the general ledger to help you prepare for your exams, interviews, or different tests.

If you find it difficult to answer any of these multiple choice questions (MCQs), you can read about the general ledger on this website.

1. Which one of the following is known as the king of all books of accounts?

General journal
Cash book
General ledger
Business book

2. Transferring information from the journal to the ledger is known as:

Transferring
Posting
Balancing
Journalizing

3. Which of the following accounts is expected to have a debit balance?

Assets
Expenses
Losses
All of the above

4. The collection of all accounts in a business enterprise is known as the:

Ledger
Balance sheet
Trial balance
Journal

5. An account with a credit balance in the general ledger is classified as:

An asset account
An expense account
A liability account
All of the above

6. The process of finding out the balance of a ledger account is known as:

Posting
Calculation
Investigation
Balancing

7. The left hand side of a ledger account is known as the:

Credit side
Debit side
Income side
Profit side

8. In a ledger account, the difference between the total of the debit side and the total of the credit side is known as the:

Deficit
Debit balance
Balance
Credit balance

9. If the total of the debit side exceeds the total of the credit side, the ledger account is said to have a:

Debit balance
Credit balance
Surplus balance
Normal balance

10. In accounting, the abbreviation Dr. is used for:

Debtor
Debate
Defaulter
Debit side of ledger account

11. If an account has a credit balance, it means:

Both debit and credit sides are equal
Total of debit side exceeds total of credit side
Total of credit side exceeds total of debit side
None of the above

12. In accounting, the term credit is usually abbreviated as:

13. Which of following types of accounts normally have a credit balance?

Assets, liabilities, capital
Revenues, liabilities, capital
Revenues, liabilities, expenses
Revenues, liabilities, losses

14. In a ledger account, if total of the debit side is equal to the total of the credit side, the account is said to have a:

Expected balance
Normal balance
Credit balance
Zero balance

15. A non-zero balance in a ledger account represents:

Increase in account
Decrease in account
Increase or decrease in account
No change in account

16. Which of the following correctly represents the sequence of the accounting cycle?

Journal entry > transaction analysis > ledger account
Transaction analysis > journal entry > ledger account
Transaction analysis > journal entry > trial balance
Transaction analysis > trial balance > ledger account

17. The book in which business transactions are recorded in classified form is the:

Trial balance
Ledger
Journal
Cash book

18. The function of the ledger is:

Recording
Classification
Summarization
Interpretation

19. A separate record for each account is maintained in the:

Journal
Trial balance
Ledger
None of the above

20. Sundry debtors is the total of all balance on:

Sales ledger
Bought ledger
General ledger
Private ledger

21. Double Entry Accounting System is successfully applied through:

Trial Balance
Ledger
Journal
Cash Book

22. The process of transferring data from journal to ledger is called:

Recording
Journalizing
Posting
All of these

23. Ledger is a book in which accounts are opened:

All Real
All Personal
All Normal
All of these

24. Ledger is also called:

Main Book of Entry
King of Books of Accounts
Both of these
None of these

25. Difference between two sides of an account is:

Balance
Trial Balance
Zero Balance
All of these

You can also check:

General Ledger short questions

General Ledger fill in the blanks

General Ledger MCQs

Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

General Ledger MCQs FAQs

True Tamplin, BSc, CEPF®

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Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

General Ledger MCQs FAQs

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