Financial Accounting-I Unit 5: Ledger Posting

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Questions and Answers

What is the primary function of the ledger in financial accounting?

To record only cash transactions

To summarize all transactions in a single entry

To track all transactions related to different accounts (correct)

To provide a general overview of financial statements

In the ledger posting process, where are debits recorded?

On the left side (correct)

In the cash flow statement

On the right side

In the trial balance

What term is used when recording transactions for money received in the ledger?

From

For

By (correct)

Which of the following accounts would typically be tracked in a ledger?

Sales account Signup and view all the answers

What is the first step in the ledger posting process?

Recording in the general journal Signup and view all the answers

How is money going out recorded in the ledger?

On the right side as credits Signup and view all the answers

Which phrase is associated with recording payments or purchases in the ledger?

To account Signup and view all the answers

What is the overall purpose of maintaining a ledger in accounting?

To track and organize account transactions Signup and view all the answers

What does it indicate if the left (debit) side total is larger when balancing a ledger account?

It indicates a Debit Balance. Signup and view all the answers

What is the correct notation for carrying down a Debit Balance?

To Balance b/d Signup and view all the answers

When balancing the ledger, what is the first step in the process?

Add up the left (debit) and right (credit) sides separately. Signup and view all the answers

What is the purpose of balancing the ledger at the end of the year?

To confirm all transactions have been recorded accurately. Signup and view all the answers

What is indicated by writing 'By Balance c/d' on the credit side?

That the account is being closed and its balance is transferred forward. Signup and view all the answers

What happens to the balance from the previous year at the start of a new financial year?

It is noted as 'To Balance b/d' on the debit side. Signup and view all the answers

Which of the following correctly describes the balance amount?

It must be written in both the debit and credit columns. Signup and view all the answers

What is a characteristic of nominal accounts in relation to the balancing process?

Nominal accounts are not balanced but instead closed to the profit and loss account. Signup and view all the answers

Study Notes

Jain Online University

Jain University offers online courses.
It's a deemed-to-be university.

Teaching-Learning-Evaluation Plan (Week 5)

Quadrant 1 (eContent): Watch eLearning content on Ledger Posting; review eLM (elearning management system) unit on Ledger Posting.
Quadrant 2 (e-Tutorial): Review previous lesson (Ledger Entries) from live session recording; participate in live session #5 on Ledger Posting.
Quadrant 3 (e-Assessment): Complete formative assessment for Ledger Posting; repeat the assessment after the live session for self-assessment; solve practice problems on Ledger Posting; complete continuous internal assessment #1.
Quadrant 4 (Discussions): Participate in collaborative learning discussions about practice problems; watch the lecture (YouTube link provided).

Financial Accounting-I (Unit 5: Ledger Posting)

Ledger is like a detailed record book.
Transactions related to accounts (like cash, sales, and purchases) are tracked.

Ledger Posting Process

Transactions from general journals are organized and recorded in ledger accounts.
Debits (money going in) are on the left side; credits (money going out) are on the right side.
"To" indicates what you paid or bought (debits); "By" indicates what you received or sold (credits).
Debit an account in the journal means debit the same account in the ledger; record the corresponding credit account.

Balancing of Ledger: Purpose

Balancing at year-end checks if all transactions are recorded accurately.
Add the debit and credit sides of the account separately.
Find the difference (balance amount) by subtracting the smaller total from the larger one.

Debit or Credit Balance

If debit side total is bigger, it's a debit balance (written on the right credit side with "By Balance c/d" or "By Balance c/FD").
If credit side total is bigger, it's a credit balance (written on the left debit side with "To balance c/d" or "To balance c/fd").
Close and balance the account by writing the balance amount in both debit and credit columns.

Opening Balance Next Year

The previous year's balance becomes the starting balance for the new year.
If debit balance, write "To Balance b/d" or "To Balance b/fd" on the debit side (b/d means brought down, b/fd means brought forward).
Income and expense accounts are not balanced this way. They transfer to the profit and loss account for calculating profit or loss.

Teaching-Learning-Evaluation Plan (Week 6: Trial Balance)

Quadrant 1 (eContent): Watch eLearning content on Trial balance; review eLM unit on Trial balance.
Quadrant 2 (e-Tutorial): Review previous lesson (Ledger Posting) from live session recording; participate in live session #6 on Trial balance
Quadrant 3 (e-Assessment): Complete formative assessment for Trial balance; repeat the assessment after the live session for self-assessment; solve practice problems on Trial balance.
Quadrant 4 (Discussions): Participate in collaborative learning discussions about practice problems; watch the lecture (YouTube link provided).

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Description

This quiz focuses on Unit 5 of Financial Accounting-I, specifically on the topic of Ledger Posting. It includes assessments, eLearning content, and collaborative discussions to enhance understanding of transaction records in accounting. Engage with formative assessments and practice problems to solidify your knowledge.