Bookkeeping Ledger Flashcards

When a transaction is recorded in the journal and then posted to the ledger, which step comes first?

Answer: Recording in the journal

The journal entry is always recorded first (original book of entry), and then the amounts are posted to the appropriate ledger accounts.

A debit entry to an expense account in the ledger will:

Answer: Increase the expense balance

Expense accounts have a normal debit balance, so debiting an expense account increases its balance.

What information is typically NOT found in a general ledger account entry?

Answer: The name of the customer placing the order

Customer names belong in the accounts receivable subsidiary ledger; the general ledger account entry typically shows the date, reference, and debit/credit amount.

Which of the following errors would NOT be detected by a trial balance?

Answer: A debit posted to the wrong account

Posting a debit to the wrong account still leaves total debits equal to total credits, so the trial balance remains in balance despite the error.

An account number written in the journal's posting reference column indicates:

Answer: The entry has been posted to the ledger

Writing the ledger account number in the journal's posting reference column confirms that the entry has been successfully posted to that ledger account.

Which of the following best describes the 'footing' of a ledger account column?

Answer: The total of all amounts in a single column

Footing refers to the process of totaling all amounts in a single column of a ledger account (separately for debits and credits).

The general ledger is sometimes called the 'book of ___' entry.

Answer: final

The general ledger is called the book of final entry because transactions flow from the journal (original entry) to the ledger (final entry) before financial statements are prepared.