Solutions-Class-11-Commerce-Book Keeping and Accountancy-Chapter-4-Ledger-Maharashtra Board

Ledger is the principal book of accounts that contains a summarized record of all individual accounts, such as assets, liabilities, capital, revenue, and expenses.

Ledger posting is the process of transferring entries from the journal or subsidiary books into the appropriate accounts within the ledger.

An account shows a nil balance when the total of the debit side is exactly equal to the total of the credit side.

Folio refers to the page number in an accounting book where a specific entry is recorded or from which it has been transferred.

The statement form of a ledger account is used in actual practice within modern computerized accounting systems and for bank passbooks.

Proprietor’s capital is treated as a liability because the business and owner are considered separate, so the capital is an amount the business owes to the owner.

The business has an obligation to return this amount to the owner in the future. Because it has to be returned, it is treated as a liability.

The cash account never shows a credit balance because it is a real account, and a business cannot pay out more physical cash than it has received or currently holds.

A Trial Balance is a list of all ledger accounts on a specific date showing their debit and credit balances, prepared to ascertain the arithmetical accuracy of the books of accounts.

(c) Personal

(b) Closing

(a) J.F.

(d) Debit

(c) Balancing

(a) posted

(c) debit

(a) Trial Balance

Statement is - False.

Reason: The Journal or Subsidiary Books are considered the books of Original/Primary entry, whereas the Ledger is the book of Final/Secondary entry.

Statement is – False.

Reason: The process of transferring entries from the Journal or Subsidiary Books into the appropriate accounts in the Ledger is called 'Posting'. Recording transactions in the Journal is the initial stage of chronological recording

Statement is – False.

Reason: When a trader withdraws cash for personal use, the Drawings Account should be debited. The Cash or Bank account is the one that is credited to show the outflow of funds from the business.

Statement is – False.

Reason: Unlike Personal and Real accounts, the balances of all Nominal Accounts are transferred to the Trading or Profit and Loss Account at the end of the accounting year. They are closed rather than being carried forward as opening balances.

Statement is – True.

Reason: If the total of the debit side of an account is higher than the total of the credit side, the account is said to have a Debit balance.

Statement is – True.

Reason: In the ledger specimen and Trial Balance formats, the title or name assigned to a specific account is referred to as the "Name of the Account" or "Head of Accounts".

Statement is – False.

Reason: A Trial Balance is prepared specifically to ascertain the arithmetical accuracy of the books of accounts. While it shows that debits and credits are equal, it does not necessarily prove that all accounting entries are absolutely correct (for instance, it might not detect an entry posted to the wrong account but on the correct side).

Statement is – True.

Reason: The Trial Balance is an abstract of all ledger accounts showing debit and credit balances. It relies on the double entry principle where every transaction has an equal and corresponding effect on both sides, ensuring the total debits equal total credits.

(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 ₹ 24,000 at 20% Profit on cost, the purchase price of the goods is ₹ 20,000

(1) Ledger                  

(2) Return Outward

(3) J.F                        

(4) Credit Balance

(5) Nominal Account