Bookkeeping And Accounting Quiz!

The ledger is an essential component in preparing the final account. It is a record of all financial transactions, including assets, liabilities, income, and expenses. The ledger provides detailed information that is necessary for accurately preparing the final account, such as calculating profit or loss, determining the financial position of the company, and ensuring that all transactions are properly recorded. Without the ledger, it would be challenging to compile the necessary information and accurately present the financial position of the company in the final account. Therefore, the statement that the ledger is not important to prepare the final account is false.

The statement is true because a ledger is a book or a computerized record that contains all the final entries of financial transactions. It is where all the accounts and balances are recorded, making it the final and most comprehensive record of a company's financial transactions. Therefore, it is correct to say that a ledger is also known as the final entry.

The credit side of Particulars is denoted by the word 'By'. This means that whenever a transaction or entry is recorded on the credit side of an account, the word 'By' is used to indicate the source or origin of the entry. This convention is followed in double-entry bookkeeping to maintain consistency and clarity in recording financial transactions. By using 'By' on the credit side, it helps to distinguish it from the debit side, which is denoted by the word 'To'.

The given statement is true. JF stands for Journal Folio.

The given statement is true because Tally ERP 9 is a widely used software for preparing Ledger A/c. It is specifically designed for accounting purposes and provides features like maintaining financial records, generating reports, and managing inventory. Many businesses and organizations use Tally ERP 9 to streamline their accounting processes and ensure accurate and efficient ledger preparation.

Preparing ledgers is an essential part of accounting that helps in organizing and recording financial transactions. Ledgers provide a detailed overview of a company's financial activities, including assets, liabilities, revenues, and expenses. By maintaining accurate and up-to-date ledgers, businesses can easily determine their financial positions and make informed decisions. Therefore, the statement that preparing ledgers cannot help in knowing financial positions easily is incorrect.

The correct answer is true because LF stands for Ledger Folio. Ledger Folio is a reference number or page number that is used to locate a specific entry in a ledger. It helps in organizing and tracking transactions in the ledger, making it easier to find and analyze financial information. Therefore, the statement that LF stands for Ledger Folio is correct.

The Debit side of Particulars is not denoted by the words 'By'. In accounting, the Debit side is typically denoted by the word 'To', while the Credit side is denoted by the word 'By'. Therefore, the given statement is false.

The statement "The specimen of Ledger is in 'T' form" is true. This means that the layout or format of the ledger is in the shape of a 'T', with the account names listed on the left side and the debit and credit columns on the right side. This format is commonly used in bookkeeping to record and summarize financial transactions.