11th Book-Keeping and Accountancy
Book-Keeping and Accountancy Class 11- Chapter - 4 - Ledger
Q.1. Answer in one sentence only
1) What is Ledger?
Ans. The ledger is the principle book of records and contains all the accounts of a business firm arranged in an orderly manner.
2) What is Ledger Posting?
Ans. The process of transferring entries from the books of original entries (Journal or subsidiary books) into respective account in the ledger is known as Ledger Posting.
3) When does an account show a nil balance?
Ans. When the total of debit side of amounts and credit side of amounts of an account are equal, we can say that account shows a nil balance.
4) What is Folio?
Ans. Folio means page number.
5) Where is the statement form of ledger A/c is used in actual practice?
Ans. While preparing pass book, bank uses the statement form of ledger NC in actual practice.
6) Why Proprietor’s Capital Account is a liability for the business?
Ans. Amount invested by proprietor in the business is supposed to be returned by business in its life span, therefore it is known as liability for the business.
7) Why does cash account never shows a credit balance?
Ans. Business can’t spent more cash amount than the cash amount business has. Therefore, cash account never shows a credit balance.
8) What is Trial Balance?
Ans. A trial balance is a list of balances of all ledger accounts as on specific date showing debit or credit balances of an account in the ledger.
Q. 2. Write the word, term, phrase, which can substitute each of the statements.
| Statements |
Ans.
|
| (1) Principal books of accounts. |
Ledger
|
| (2) Transferring a journal entry to the appropriate accounts in the ledger. |
Posting
|
| (3) Page number of the Ledger to which an entry is posted. |
Ledger folio
|
| (4) The process of extracting the balance and inserting it on lesser side of an account. |
Balancing
|
| (5) A debit balance to personal Accounts. |
Debtor
|
| (6) A credit balance to bank Account. |
Bank overdraft
|
| (7) An account to be debited for goods damaged by fire. |
Loss by fire
|
| (8) A Trial Balance in which only net balances of all ledger accounts are transferred. |
Net trial balance
|
Q. 3. Select appropriate alternatives from those given below and rewrite the sentences.
1) In case of a credit transaction one of the account must be a …………….account.
a) Cash b) Credit c) Personal d) Debit
2) ‘c/d’ indicates …………..balance.
a) Opening b) Closing c) Positive d) Negative
3) ………….. Column of ledger is used for writing page number of Journal.
a) J.F. b) L.F. c) Date d) Particulars
4) Debtors Account shows ……….balance.
a) Real b) Negative c) Credit d) Debit
5) ………..is the process of deriving the difference between totals of the debit and credit
side of each ledger a/c.
a) Totalling b) Journalizing c) Balancing d) Posting.
6) Total of Purchase book is………….to Purchase Account.
a) posted b) moved c) given d) entered.
7) Real account always shows…………balance.
a) minimum b) maximum c) debit d) credit
8) …………..is prepared to test arithmetical accuracy of Books of Accounts.
a) Trial Balance b) Ledger c) Journal d) List
Q.4. State whether the following statements are ‘True or false’ with reasons.
1) Ledger is a book of original entry.
Ans. This statement is False.
Ledger is a book of final/secondary entry, as all the transactions from journal are to be transferred to ledger in their respective account. As such journal is a book of original entry.
2) The process of recording a transaction in the Journal is called Posting.
Ans. This statement is False.
The process of transferring entries from the journal into appropriate account is called posting, which is a necessary or basic process of accounting to know the balance of each account.
3) A cash withdrawal from the business by the trader should be credited to Drawings A/c.
Ans. This statement is False.
A cash withdrawal from the business by the trader should be debited to Drawings No as it is a personal transaction.
4) Balances of Nominal Accounts are carried forward to the next year.
Ans. This statement is False.
Balances of Personal Accounts and Real Accounts are to be carried forward to the next year.
5) When debit side of an account is greater then the credit side, the account shows debit balance.
Ans. This statement is True.
6) The name of an account written on top of each account is called ‘Head of Account'.
Ans. This statement is True.
7) Agreement of Trial Balance always proves accounting accuracy.
Ans. This statement is False.
Agreement of trial balance proves arithmetical accuracy.
8) Trial balance is based on the double entry principle that for every debit there is equal amount of corresponding credit.
Ans. This statement is True.
Q. 5. Fill in the blanks.
2) Cash account always shows………..balance.
3) The right hand side of an account is called………..side.
4) Creditors shows………balance.
5) ………..accounts are closed by transferring its balances to Profit and Loss Account.
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6) ‘b/d’ means………….
7) Rent paid for the residential quarter will be debited to…….account.
8) Sold goods of ` 24,000 at 20% Profit on cost, the purchase price of the goods is……….
(Answers)
1) Debit balance on Nominal Account shows expenses or loss.
2) Cash account always shows debit balance.
3) The right hand side of an account is called credit side.
4) Creditors shows credit balance.
5) Nominal accounts are closed by transferring its balances to Profit and Loss Account.
6) ‘b/d’ means brought down
7) Rent paid for the residential quarter will be debited to Drawings account.
8) Sold goods of Rs. 24,000 at 20% profit on cost, the purchase price of the goods is Rs. 20,000.
Q.6. complete the following table. (Answers)
(1)
| Journal |
Journalising
|
Post
|
Posting
|
(2)
| Sales Return |
Return Inward
|
Purchase Return
|
Return Outward
|
(3)
| L.F. |
Ledger
|
J.F.
|
Ledger
|
(4)
| Assets |
Debit Balance
|
Liabilities
|
Credit Balance
|
(5)
| Land & Building |
Real Account
|
Commission Received
|
Nominal Account
|
Q.3 From the following transactions prepare necessary Ledger Accounts in the Books of Vinay and balance the same.
2019
Jan. 1 Started business with Cash ` 10,000
6 Bought goods from Vikas ` 3,000
9 Sold goods to Bhushan ` 2,400
12 Paid to Vikas on account ` 1,600
19 Received on account from Bhushan ` 1,000
25 Cash Purchases ` 3,600
30 Cash Sales ` 5,000
31 Paid Wages ` 400
Q.4 Journalise the following transactions and prepare Cash A/c only.
2019
July
1 Hardik started business with Cash ` 15,000 and Machinery ` 20,000
4 Purchased goods for ` 9,000 less 10% Cash Discount.
9 Sold goods to Amar ` 3,000
12 Distributed goods worth ` 700 as free samples.
14 Bought Stationery for ` 550 for office use.
18 Received ` 950 from Dhanashree, a customer, whose account was earlier written off
as a bad debts.
21 Abhiram invoiced us goods worth ` 3,000.
24 Settled Abhiram’s account, he allowed 5% cash discount.
27 Exchanged goods worth 2,500 against Furniture of the same amount.
29 Withdrawn cash from ATM ` 5,000 for office use and ` 3,000 for personal use.
Q.5 Prepare Aparna’s account in books of Suparna.
2019
Jan.
1 Balance due from Aparna ` 60,000
4 Sold goods to Aparna ` 15,000 at 10% Trade Discount.
7 Goods returned by Aparna ` 1,500 (Gross)
11 Received crossed cheque from Aparna ` 50000
17 Invoiced goods to Aparna ` 12,000
25 Sold goods to Aparna in cash ` 6,000
30 Received cash from Aparna ` 33,000 in full settlement of her account.
Q.6 Prepare Cash A/c, Bank A/c, Purchases A/c, Sales A/c and Capital A/c. and balance
the same in the books of Madanlal.
2019
Aug.
1 Started business with bank balance ` 40,000.
2 Purchased goods from Aseem worth ` 15,000 less 10% Trade Discount.
3 Sold goods to Arun for ` 8,000 for cash.
4 Paid Rent ` 3,000 and Electricity bill ` 500.
5 Purchased 100 Shares of Perfect Technologies for ` 55 per share and paid Brokerage
` 250 by transfer through netbanking.
6 Withdrawal of goods for personal use ` 500.
7 Sold goods for cash ` 5,000 less 10% Cash Discount.
8 Deposited cash into Bank ` 2,000.
9 Paid ` 3,000 for daughter’s tuition fees by Debit Card.
10 Purchased a Table for ` 2,000.
19 Received ` 1,500 by selling the scrap.
27 Paid cash into bank in excess of ` 2,000
Q.7 Journalise the following transactions; post them into Ledger for February 2019
1 Sunil Started business with stock of goods ` 20,000 and Cash ` 1,70,000 out of which ` 50,000
borrowed from his friend Kedar@10 p.a.
5 Placed an order for goods worth ` 7,000 with Mohan for which advance ` 5,500 was paid.
9 Purchased Stationery for office use ` 4,500
12 Goods distributed as free samples ` 2,000
17 Paid Freight ` 400 on behalf of Mr. Dev.
24 Received Goods from Mohan as per our order dated 5th Feb and settled his account.
27 Bought goods from Shekhar on two months credit for ` 7,000 at 20% Trade Discount with
instructions to send them to Sagar.
28 Sent to Sagar Outward Invoice for goods supplied by Shekhar. at list price less 10% Trade
Discount.
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Q.8 Journalise the following transactions and Prepare ledger accounts in the books of
Sanjeev.
2019
June
1 Cash Received from Raju ` 10,000 for commission.
3 Intra-state sale to Rakesh ` 3,000 and SGST @2.5% and CGST @2.5% applicable..
5 Received full amount from Rakesh.
8 Intra-state purchases from Mangesh ` 2,000 and SGST @2.5% and CGST @2.5%
applicable.
11 Paid the necessary amount to Mangesh.
18 Paid Rent ` 2,500
24 Paid mobile bill ` 1,000 out of which ` 700 for office use and for ` 300 for personal
use.
