1.

A ledger is called a book of

(a) Primary entry
(b) Secondary entry
(c) Final entry
(d) None of the above

2. A ledger account is prepared from

(a) Events
(b) Transactions
(c) Journal
(d) None of the above

3. The column of ledger which links the entry with journal is

(a) L.F column
(b) J.F column
(c) Debit column
(d) Credit column

4. Putting on the credit side of an account is written as

(a) Being
(b) To
(c) By
(d) From

5. Nominal account having debit balance represents

(a) Income / Gain
(b) Expenses / Losses
(c) Cash
(d) Assets

6. Real accounts always show

(a) Debit balances
(b) Credit balances
(c) Trial balances
(d) Nil balances

7. Accounts having credit balance is closed by writing

(a) To balance c/d
(b) To balance b/d
(c) By balance c/d
(d) By balance b/d

8. When the total of debits and credits are equal, it represents

(a) Debit balance
(b) Credit balance
(c) Nil balance
(d) Current balance
9. The balances of personal and real accounts are shown in the
(a) Profit and Loss account
(b) Balance sheet
(c) current account
(d) Trading account

10. Which of the following accounts have only credit balance?

(a) Reserve fund account
(b) Capital account
(c) Accounts payable
(d) All of the above

11)Transferring entries from journal to ledger account is commonly known as

A) Recording
B) Transferring
C) Posting
D) Entry making

12) An account records the ___________ in the balance of an item

A) Increase

B) Decrease

C) Increase or decrease

D) Appreciation

13) If credit side of a bank account is greater than the debit side, it indicates which of the
following?

A) Bank overdraft

B) Cash at bank

C) Bank balance

D) Current Asset
14) If debit side of a bank account is greater than credit side it indicates which of the
following?

A) Cash at bank

B) Bank understatement

C) Bank overdraft

D) Balance overstatement

14 Ledger is also
called -
1. Principal Book
2. Subsidiary Book
3. Day Book
4. Proper Book
Correct Answer: 1

15) _________ will be credited if goods are given as charity

A) Cash

B) Charity

C) Purchases

D) Sales

16) Which of the following is known as the base for preparing trial balance?

A) Journal

B) Cash account

C) Ledger account

D) Balance sheet
17) If debit balance is greater than creadit balance then the account blance will be:

A) Credit balance

B) Debit and credit balance

C) Cash balance

D) Debit balance

18) The normal balance of capital account is

A) Credit balance

B) Debit balance

C) Cash balance

D) Neither debit nor credit balance

19) The normal balance of asset account is

A) Credit balance

B) Debit balance

C) Cash balance

D) Neither debit nor credit balance

20) The normal balance of liability account is

A) Debit balance

B) Credit balance

C) Cash balance

D) Neither debit nor credit balance

11) Which of the following statements is incorrect regarding capital account?

A) Debit increases the capital account balance

B) Credit increases the capital account balance

C) Fresh capital increases the capital account balance

D) Net income increases the capital account balance

12) Which of the following is the normal balance of a rent expense account?

A) Credit balance

B) Cash balance

C) Overdraft

D) Debit balance

13) Revenue and expense accounts are referred as

A) Nominal accounts

B) Real account

C) Cash accounts

D) Banks account

14) The real accounts are accounts of Assets, liabilities and ________

A) Expenses

B) Revenues

C) Capital

D) Drawing
15) Building account is classified as _________ account

A) Nominal

B) Real

C) Cash

D) Capital

16) Office equipments account is classifed as _________ account

A) Nominal

B) Real

C) Cash

D) Capital

17) ___________ helps business to classify transactions according to their nature

A) General journal

B) Real accounts

C) Ledger accounts

D) Cash accounts

18) Which of the following is a real account?

A) Office equipment

B) Rent expenses

C) Rent income

D) Insurance expense
19) Which of the following accounts are closed at the end of an accounting period?

A) Nominal accounts

B) Balance sheet accounts

C) Real accounts

D) None of them

20) Which of the following is the closing balance of a ledger account?

A) Blance c/d

B) Balance b/d

C) Balance e/d

D) Balance f/c -

Q21. Transferring entries from journal to ledger account is commonly known as

(a) Recording

(b) Transferring

(c) Posting

(d) Entry making

Q22. Which of the following is known as the base for preparing trial balance?

(a) Journal

(b) Cash account

(c) Ledger account

(d) Balance sheet

Q 23 If debit balance is greater than credit balance then the account balance will be:

(a) Credit balance

(b) Debit and credit balance

(c) Cash balance

(d) Debit balance –

Q24 Which of the following describes a classification of the transaction?

(a) General ledger

(b) Income Statement

(c) Balance Sheet

(d) Journal

Q25. Which of the following describes a classification of the transaction?

(a) General ledger (b) Income Statement

(c) Balance Sheet (d) Journal

Q26. Transferring entries from journal to ledger account is commonly known as

(a) Recording (b) Transferring

(c) Posting (d) Entry making

Q27 . Which of the following is known as the base for preparing trial balance?

(a) Journal (b) Cash account

(c) Ledger account (d) Balance sheet

Q28 If debit balance is greater than credit balance then the account balance will be:

(a) Credit balance (b) Debit and credit balance

(c) Cash balance (d) Debit balance –

Q29. _________ is a book which contains all accounts of the business enterprise.

(a) Journal (b) Ledger

(c) Trial balance (d) None of the above

Q30 Ledger may be kept in the form of

(a) Bound Ledger (b) Loose Leaf Ledger

(c) Both a and b (d) None of the above

Q31. Transferring the debit and credit items from the journal to their respective
accounts in the ledger.

(a) Posting (b) Recording

(c) Journalising (d) Summarising

Q32 Ledger is a book of _______ entries

(a) Prime (b) Original

(c) Secondary (d) Generic

Q33 A normal balance of capital account is

(a) Credit Balance (b) Debit Balance

(c) Cash Balance (d) Neither Debit or Credit Balance

Q34. A normal balance of asset account is

(a) Credit Balance (b) Debit Balance

(c) Cash Balance (d) Neither Debit or Credit Balance

Q35. A ledger account is prepared from

(a) Event (b) Transactions

(c) Journal (d) None of the above

Q36. In a hand written accounting system, where would you record decrease in an
Asset.

(a) Nowhere in ledger account (b) On both sides of ledger account

(c) On Debit side of ledger account (d) On Credit side of ledger account
Q37. A supermarket purchases food items for resale on credit from a supplier,
Goldman Ltd. The entries in the supermarket's accounts should be:.

(a) Debit : Goldman Ltd. Credit : Sales

(b) Debit : Purchase Credit : Cash

(c) Debit : Purchase Credit : Goldman Ltd.

(d) Debit : Goldman Ltd. Credit : Purchases

Q38 A company buys a motor van on credit from Park Motors Ltd. The entries in
the company’s accounts should be:

(a) Debit : Park Motors Ltd. Credit : Motor Van

(b) Debit : Motor Van Ltd. Credit : Park Motors Ltd.

(c) Debit : Purchase Credit : Bank

(d) Debit : Cash Credit : Goldman Ltd.

Q39 A company pays a supplier JOJO LTD. the amount owed in cash. The entries in
the company's accounts should be:

(a) Debit : Cash. Credit : Purchases

(b) Debit : JOJO Ltd. Credit : Cash

(c) Debit : Purchase Credit : Cash

(d) Debit : Cash Credit : JOJO Ltd.

Q.40 Ledger is also called -

1. Principal Book

2. Subsidiary Book

3. Day Book

4. Proper Book

Correct Answer: 1