General ledger – Questions & Answers

Test your learning about ‘General ledger’ chapter by answering 10 short questions given below. We suggest you try to answer each question yourself before clicking on the ‘see answer’ button.

If you find difficulty in answering these questions, read ‘General ledger‘ chapter thoroughly from the explanation section of the website.

1. What is a ledger?

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2. What is meant by posting?

3. What is meant by balancing?

4. What are are the methods of preparing ledger accounts?

5. What is meant by balance?

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6. What is difference between debit balance and credit balance?

7. What is meant by zero balance?

8. What abbreviations are used for debit and aredit?

9. A ledger account has two sides - left side and right side. What are book-keeping/accounting names of these two sides?

10. What is meant by posting reference (P.R) in relation to a ledger account?

3 thoughts on “General ledger – Questions & Answers”

  1. BR started a business on 1 May and, during the first month, entered into
    the following transactions:
    1 May BR starts business as a sole proprietor with $20,000 in
    cash
    2 May Pays $15,000 cash into a business bank account
    4 May Purchases goods on credit from JM for $2,000
    6 May Purchases goods from ERD on credit for $3,000
    7 May Pays wages in cash $60
    10 May Pays rent by cheque $80
    12 May Sells goods for cash $210
    16 May Buys furniture for $1,500 paying by cheque
    19 May Sells goods on credit to SP for $580
    22 May Buys goods for cash $3,900
    24 May Buys fittings for cash $600
    Pays carriage outwards costs by cheque $25
    25 May Pays wages by cash $110
    Sells goods for cash $430
    27 May Receives part payment from SP of $330 by cheque
    Pays carriage inwards costs by cheque $20
    28 May Pays advertising by cheque $25
    Sells goods for cash $890
    29 May Sells goods on credit to KM for $8,090
    30 May Withdraws $100 cash for his personal use
    Ledger Accounting and Double-Entry Bookkeeping
    130
    Illustration 2
    Test your understanding 2
    Required:
    Prepare ledger account entries to record the transactions.
    Note: When you draw up your accounts, you may want to leave extra
    lines after the bank account (approx 10), and after all other ledger
    accounts (approx 4 per account) – this exercise is continued in chapter
    5.
    Note: It might help you to determine the correct ledger entries by
    completing a table before you start, like this (the first item is done for
    you):
    Date Names of
    accounts
    involved
    Type of
    accounts
    Increase/decrease Debit/credit
    1
    May
    Cash Asset Increase Debit
    Capital Capital Increase Cre

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