Bookkeeping Ledger Test

Question 1

What is the meaning of each page of the general ledger?

Accepted Answer

An account from the chart of accounts

Answer

Each page or section of the general ledger is dedicated to a specific account, such as Cash, Accounts Receivable, Sales Revenue, or Utilities Expense. These accounts are listed in the chart of accounts, which serves as a directory for all financial accounts used by a business. Therefore, each page of the general ledger represents an account from the chart of accounts.

Question 2

Mark the three main ledgers that are utilized in double-entry accounting.

Accepted Answer

General ledger

Answer

In double-entry accounting, the general ledger is the primary ledger containing all asset, liability, equity, revenue, and expense accounts. Accounts payable and accounts receivable ledgers are subsidiary ledgers that provide detailed information for individual vendors and customers, respectively, supporting the control accounts in the general ledger. These three are fundamental ledgers for tracking financial transactions.

Question 3

Accounts payable and receivable ledgers are

Accepted Answer

Subsidiary ledgers

Answer

Accounts payable and accounts receivable ledgers are classified as subsidiary ledgers. They contain detailed information for individual creditors (payables) and debtors (receivables), which collectively sum up to the balances in their respective control accounts within the general ledger. This structure allows for detailed tracking while keeping the general ledger concise.

Question 4

Where did the general ledger information come from?

Accepted Answer

General journal

Answer

Information for the general ledger originates from the general journal. Transactions are first recorded chronologically in the general journal (or special journals), detailing the accounts to be debited and credited. This journal entry data is then 'posted' to the respective individual accounts in the general ledger, which serves as the book of final entry.

Question 5

What is the usual format for a ledger?

Accepted Answer

T

Answer

The usual format for a ledger account is a 'T' shape, commonly known as a T-account. This visual representation clearly separates the debit entries on the left side from the credit entries on the right side. It helps in understanding the increases and decreases to an account balance.

CPB / BookKeeping Practice Test

CPB / BookKeeping Practice Test

Bookkeeping Ledger Test