Online Test — Ledger
15 Questions • 15 min • Chapter MCQ
15:00
Question 1 of 15
The ledger is the book of:
Original entry
Final entry
Prime entry
Cash only
Explanation: The ledger is the book of final entry.
Question 2 of 15
An individual account in the ledger is shaped like the letter:
L
T
V
X
Explanation: Ledger accounts use the T-format (Dr left, Cr right).
Question 3 of 15
Transferring entries from journal to ledger is called:
Casting
Posting
Balancing
Journalising
Explanation: Posting moves entries to the ledger.
Question 4 of 15
The account debited in the journal is posted on the ____ side of its ledger account.
Credit
Debit
Either
Neither
Explanation: Debited account → debit side of its own account.
Question 5 of 15
Entries on the credit side of a ledger account begin with:
To
By
For
Of
Explanation: 'By' is used on the credit side.
Question 6 of 15
Finding the difference between the two sides of an account is called:
Posting
Balancing
Journalising
Narration
Explanation: Balancing finds the difference between the sides.
Question 7 of 15
Balance c/d is written on the:
Bigger side
Shorter (smaller-total) side
Both sides
No side
Explanation: It goes on the shorter side to equalise the totals.
Question 8 of 15
A cash account normally has a:
Credit balance
Debit balance
Nil balance
Negative balance
Explanation: Cash is an asset, so it has a debit balance.
Question 9 of 15
A creditor's account normally has a:
Debit balance
Credit balance
Nil balance
No balance
Explanation: A creditor is a liability — a credit balance.
Question 10 of 15
Assets and expenses normally have ____ balances.
Credit
Debit
Nil
Mixed
Explanation: Assets and expenses show debit balances.
Question 11 of 15
Nominal accounts (expenses/incomes) are usually:
Balanced
Closed to Trading/P&L
Ignored
Carried forever
Explanation: They are closed by transfer to Trading/P&L, not balanced.
Question 12 of 15
The opening balance of the next period is shown as:
Balance c/d
Balance b/d
Total
Nil
Explanation: Balance b/d (brought down) opens the next period.
Question 13 of 15
The correct order of book-keeping steps is:
Post → journalise → balance
Journalise → post → balance
Balance → post → journalise
Journalise → balance → post
Explanation: Journalise, then post, then balance.
Question 14 of 15
Cash A/c: Dr total 60,000, Cr postings 40,000. The balance is:
Rs 20,000 debit
Rs 20,000 credit
Rs 1,00,000
Nil
Explanation: 60,000 − 40,000 = Rs 20,000 debit balance.
Question 15 of 15
Ledger balances are summarised to check agreement in the:
Journal
Trial balance
Voucher
Pay-in slip
Explanation: The trial balance lists all balances to verify agreement.