Ledger Questions and Answers AP Inter 1st Year Accounts Chapter 5

Andhra Pradesh BIEAP AP Inter 1st Year Accounts Study Material Pdf 5th Lesson Ledger Textbook Exercise Questions and Answers.

Ledger Class 11 Questions and Answers AP Inter 1st Year Accountancy 5th Lesson

I. Fill in the blanks for the following questions. (1 Mark)

Question 1.
……… is also called “Book of Secondary Entry”.
Answer:
Ledger

Question 2.
J.F. means ……..
Answer:
Journal Folio

Question 3.
The book which contains all the set of accounts is called ……….
Answer:
Ledger

Question 4.
The left-hand side of an account is known as the ………. side.
Answer:
Debit

Question 5.
The right-hand side of an account is known as the …….. side.
Answer:
Credit

Question 6.
The process of transferring the entries recorded in the Journal (or) Subsidiary books to the respective accounts opened in the ledger is called ……
Answer:
posting

Question 7.
The difference between the debit and Credit totals of an account is known as the ……… of an account.
Answer:
balance

Question 8.
The excess of the Debit total over the credit total is called the …….. balance.
Answer:
debit

Question 9.
The excess of Credit total over the Debit total is called the …….. balance.
Answer:
credit

Question 10.
……….. is known as the Principal Book of account.
Answer:
ledger

II. Very Short Answer Type Questions (2 Marks)

Question 1.
What is a ledger ?
Answer:
A ledger is a book or digital record where all financial transactions are classified and recorded.

Question 2.
What is a posting ?
Answer:
Posting is the process of transferring entries from the journal to the ledger.

Question 3.
What do you mean by balancing of an account ?
Answer:
Balancing an account means finding the difference between the total debits and total credits to determine the closing balance.

Question 4.
What is debit balance ?
Answer:
A debit balance is the amount by which total debits exceed total credits in an account.

Question 5.
What is credit balance ?
Answer:
A credit balance means the amount on the right side of an account is greater than the left. It usually indicates income, liabilities, or capital.

III. Short Answer Type Questions (4 Marks)

Question 1.
Define the ledger and explain the advantages of a ledger.
Answer:
A ledger is a principal book of accounts where all the transactions of a business are classified and recorded in a summarized and permanent form. Each account has a separate page or section in the ledger.

Advantages of a Ledger:

1. Complete Information: Provides a complete record of all transactions related to a particular account.
2. Helps in Trial Balance: Facilitates the preparation of the trial balance by providing balances of all accounts.
3. Financial Statements: Assists in preparing financial statements like the Profit & Loss Account and Balance Sheet.
4. Control over Transactions: Helps in monitoring and controlling business activities.
5. Easy Reference: Acts as a ready reference for any transaction or account details.

Question 2.
What do you mean by posting ? Explain the rules relating to posting.
Answer:
Posting refers to the process of transferring entries from the journal to the respective ledger accounts.

Rules relating to posting:

1. Debit Side Posting: If an account is debited in the journal, post the amount on the debit side of that account in the ledger.
2. Credit Side Posting: If an account is credited in the journal, post the amount on the credit side of that account in the ledger.
3. Mention Opposite Account: While posting, mention the name of the corresponding (opposite) account in the particulars column.
4. Chronological Order : Post entries in the order in which they appear in the journal.

Problems

Question 1.
Journalise the following transaction of Geetha Traders and post the entries to the Ledger.
Solution:

Question 2.
Prepare Balaji’s a/c from the following transactions.

Solution:

Question 3.
Prepare Varun’s a/c from the following details.

Solution:

Working Notes :
Debit total = ₹ 43,000,
Credit total = (8,000 + 15,000 + 9,000) = ₹ 32,000,
Balance = ₹ 11,000,
Discount allowed = ₹ 11,000 × 10/100 = ₹ 1,100,
Amount received = ₹ 11,000 – ₹ 1,100 = ₹ 9,900

Question 4.
Prepare Leela’s a/c from the following transactions.

Solution:

Working Notes:
Debit total = ₹ 13,000 (6,000 + 7,000), Credit total = ₹ 25,000,
Balance = ₹ (25,000 – 13,000)12,000,
Discount Received = ₹ 12,000 × 10/100 = ₹ 1,200
Amount paid = ₹ 12,000 – ₹ 1,200 = ₹ 10,800
Note: 24^th date is a cash transaction, it not affected Personal account.

Question 5.
Prepare Rahul’s account from the following transactions.

Solution:

Working Notes:
Debit Total = ₹ 29,000,
Credit Total = (15,000 + 10,000 + 2,000) = ₹ 27,000,
Balance = ₹ 2,000 (29,000 – 27,000),
Discount allowed = ₹ 2,000 × 5/100 = ₹ 100,
Amount received = ₹ 2,000 – ₹ 100 = ₹ 1,900

Note : 9^th date is a cash transaction, it not affected Personal account.

Question 6.
Prepare Krishna’s account from the following transactions.

Solution:

Working Notes:
Credit Total = ₹ 48,000
Debit Total = (10,000 + 6,000 + 500) = ₹ 16,500
Balance = ₹ 48,000 – ₹ 16,500 = ₹ 31,500
Discount allowed = ₹ 31,500 × 5/100 = ₹ 1,575
Amount received = ₹ 31,500 – ₹ 1,575 = ₹ 29,925

Question 7.
Prepare Akhila’s account from the transactions given below.

Solution:

Working Notes:
Credit Total = ₹ 1,20,000
Debit Total = (15,000 + 45,000 + 30,000) = ₹ 90,000
Balance = ₹ 1,20,000 – ₹ 90,000 = ₹ 30,000
Discount Received = ₹ 30,000 × 10/100 = ₹ 3,000
Amount Paid = ₹ 30,000 – ₹ 3,000 = ₹ 27,000

Question 8.
Prepare Machinery account from the following.

Solution:

Note: Date 9^th related to purchases a/c but not to Machinery a/c.

Question 9.
Prepare Chandra account from the following Particulars.

Solution:

Working Notes:
Credit total = ₹ 25,000
Debit total = (10,000 + 1,000 + 5,000) = ₹ 16,000
Balance = ₹ 25,000 – ₹ 16,000 = ₹ 9,000
Discount received = ₹ 9,000 × 10/100 = ₹ 900
Amount paid = ₹ 9,000 – ₹ 900 = ₹ 8,100

Question 10.
Prepare Charan account from the following.

Solution:

Note : Dated 11^th is a cash purchases hence it is not affected personal a/c.

Question 11.
Journalise the following transactions In the books of Raghava Traders and post the entries in the ledger.

Solution:

Ledger Accounts

Question 12.
Prepare Sanju account from the following transactions.

Solution:

Note: April 8^th, 2024 : Cash sales will not appear in personal account. It appears in the Cash Book and Sales Book.

Question 13.
Prepare Nag account from the following transactions.

Solution:

Working Notes:
Amount payable i.e., 25,000 = 75,300 – 50,300
∴ Cash received from Nag in full settlement of his account
after allowing a discount @ 5% on ₹ 25,000 (Discount ₹ 1,250) is ₹ 23,750/- (₹ 25,000 – 1,250)
Discount = 25,000 × 5/100 = 1,250

Question 14.
Prepare Ram’s account from the following transactions.

Solution:

Working Notes:
Amount due i.e., 15,000 (44,000 Cr – 29,000 Cr)
Discount Allowed 10 @ for settlement of amount due Discount = 15,000 × 10/100 = 1,500