50+ Ledger MCQ Test and Online Quiz

A trial balance is used in a general ledger to verify the debit and credit balances of each account in the record. An operational company's accounting records are kept in this system, which maintains all of the account information necessary for the preparation of its financial statements. Assets, liabilities, owners' equity, income, and costs are separated into accounts based on the kind of transaction.

Salient Features of Ledger

Using a double-entry accounting system, the general ledger is the foundation of a business.
To create financial statements like the balance sheet and the income statement, general ledger accounts must include all of the transaction data necessary for their preparation.
A summary of transactions performed as journal entries to sub-ledger accounts is called a general ledger transaction.
A trial balance is a report that includes each general ledger account and its balance, making it easy to review adjustments and find errors.

Purpose of maintaining ledger

When it comes to keeping track of a company's transactions, an accounting general ledger is essential. Assets, liabilities, income, costs, and owner's equity are the categories in which transactional data is structured inside a general ledger. Once each and every sub-ledger is tallied and closed, the accountant goes on to prepare a trial balance. The trial balance data is then used to construct financial statements for the company, including the balance sheet, statement of cash flows, income statement, and other financial reports.

Following are some of the multiple choice questions on the Ledger with answers that will help the students in developing their knowledge.

Ledger MCQ

1. From which of the following is a ledger account prepared.

Transactions
Journal
Events
None of the above

2. Ledger is a principal book that contains.

Real accounts only
Personal accounts only
All accounts
Nominal accounts only

3. Among these, which item is used as the base for preparing trial balance?

Cash account
Balance sheet
Journal
Ledger account

4. The ledger column that links the entry with the journal is called as.

J.F column
L.F column
Credit column
Debit column

5. A general ledger account that summarises all revenue and expenses for a reporting period is the ....

Capital account
Bank account
Profit and Loss Summary
Profit Account

6. Dequan's Car Detailing had cash sales of $840 yesterday. So far he has had $39,600 in Sales and has $2,788 in his Cash account. After posting what wiil be the new GL balances?

Credit Sales $40,440; Debit Cash $3,628
Debit Sales $40,440; Credit Cash $3,628
Credit Sales $35,760; Debit Cash $1,948
Debit Sales $35,760; Credit Cash $1,948

7. Bill Stone, owner, makes a $2,000 draw when there was $14,330 in the Cash account. There wa $34,500 in the Capital account. He would post thus to the General Ledger as

$2,000 Credit Bill Stone, Draw; $2,000 Debit Cash
$2,000 Debit Bill Stone, Draw; $2,000 Credit Cash
$2,000 Credit Bill Stone, Capital; $2,000 Debit Bill Stone. Draw
$2,000 Debit Bill Sone, Capital; $2,000 Credit Bill Stone Draw

8. The General Ledger (p. 94)

pages must all have an account balance >0
can have more than one account on a page if space permits
should be updated at least once a month
should have a page fof each account listed in the chart of accounts

9. If a debit is posted to an asset account, the amount of the debit (p. 98)

will be subtracted from the previous balance to determine the new debit account balance
will be added to the previous balance to determine the new debit account balance
will be subtracted from the previous balance to determine the new credit account balance
will be added from the previous balance to determine the new credit account balance

10. If a credit is posted to a liability account, the amount of the credit (p. 99)

will be added to the previous account balance to determine the new credit balance
will be subtracted from the previous account balance to determine the new credit balance
will be added to the previous account balance to determine the new debit balance
will be subtracted from the previous account balance to determine the new debit balance

11. A ledger is a (p. 94)

group of accounts
form to enter transactions in chronological order
business paper from which information is obtained for an entry
a document used to record sales

12. A schedule that contains all accounts needed to prepare financial statements (p. 94)

General Journal
General Ledger
All Sales Invoices
Source Documents

13. Debtor returned damage goods $77 + $7 GST write back = $77. Cost of good sold is $35. Choose the INCORRECT ledger for this transaction.

Inventory Details Credit $ Details Date Feb 2 Accounts Payable 16 Cost of sales Debit $ 2,900 Date Feb 6 13 35 Accounts Payable 60 Cost of sales 350 28 Balance c/d 2,525 2,935 1 Mar 2,935 Balance b/d 2,525
Date Details Debit $ Date Sales Feb 13 Credit $ Details Accounts receivable 700
GST payable Debit $ Date 7 Feb 13 Date Feb 16 Details Accounts receivable Details Accounts receivable Credit $ 70
Date Feb 13 Details Cost of sales Debit $ Date Details Credit $ Inventory 35 350 Feb 16 Inventory

14. Sold good on credit $700 + $70 GST = $770. Cost of good sold is $350. Choose the correct ledgers for this transaction.

Date Details Debit $ Date Sales Feb 13 Credit $ Details Accounts receivable 700
Inventory Details Credit $ Details Date Feb 2 Accounts Payable 16 Cost of sales Debit $ 2,900 Date Feb 6 13 35 Accounts Payable 60 Cost of sales 350 28 Balance c/d 2,525 2,935 1 Mar 2,935 Balance b/d 2,525
Date Feb 13 Details Cost of sales Debit $ Date Details Credit $ Inventory 35 350 Feb 16 Inventory
All of above

15. Purchased inventory on credit $2,900 + $290 GST = $3,190. Choose the correct ledgers for this transaction.

All of above
Date Details Accounts Payable Debit $ Date Details Feb 6 66 3,190 Inventory/GST credits Feb 2 Inventory/GST credits Credit $
Inventory Details Credit $ Details Date Feb 2 Accounts Payable 16 Cost of sales Debit $ 2,900 Date Feb 6 13 35 Accounts Payable 60 Cost of sales 350 28 Balance c/d 2,525 2,935 1 Mar 2,935 Balance b/d 2,525
Date Feb 2 Details Accounts Payable 290 Feb 6 Accounts Payable 6 Debit $ Date Details GST credits Credit $

16. Which side of the ledger would increase capital?

Debit
Credit

17. Which side of ledger would increase drawings?

Debit
Credit

18. Which side of the ledger would increase an expense?

Debit
Credit

19. Sales Returns ledger is closed to:

debit side of profit and loss ledger
credit side of profit and loss ledger

20. Which three accounts are balanced (bal c/d and b/d) at the end of the reporting period?

Liabilities
Assets
Equity
All of above

21. The ledger that is a summary of all income and expenses is the:

Capital
Equity
Profit and Loss
Income statement

22. Drawings is classified as...

Expense
Negative Equity
Asset
Liability

23. Business paid for electricity $660 inclusive GST. Calculate GST.

60
$60.5

24. The process of transferring of items from a journal to their respective ledger accounts is called as.

Entry
Arithmetic
Balancing
Posting

25. A ledger is called a book of.

Primary entry
Final entry
Original entry
None of the above

26. Which of the following items would NOT appear in the P/L Summary account

Capital
Net Profit
Revenues
Expenses

27. Which of the following items would not appear on the credit side of the Inventory Account

Cost of Sales
Accounts Payable
Bank
Advertising

28. Which of the following titles is incorrect in the Accounts Payable Ledger

Inventory/GST Clearing
Bank/Discount Revenue
Purchase Returns/GST Clearing
Bank

29. Which of the following titles would not appear in the Inventory Account

Drawings
Cost of Sales
Advertising
Accounts Receivable

30. Which of the following items would appear on the Debit side of the GST Clearing Account if an amount was owed to the ATO

Accounts Payable/Bank/Bank/Accounts Receivable
Accounts Payable/Bank/Accounts Receivable/Accounts Payable
Accounts Receivable/Accounts Payable/Bank/Bank/Accounts Receivable
Accounts Payable/Bank/Bank/Balance

31. What is the debit entry required to recognize Unearned Sales Revenue as being earned

Bank
Unearned Revenue
Unearned Sales Revenue
Sales

32. When creating an allowance for doubtful debts what is the debit entry in the General Journal

Bad Debts
Accounts Receivable
Allowance for Doubtful Debts
Doubtful Debts

33. What credit entry is required when the business writes off a bad debt

Bad Debts
Accounts Receivable
Doubtful Debts
Allowance for Doubtful Debts

34. Which of the following are incorrect titles in the Disposal of Van account

Accumulated Depreciation
Trade-in
Loss on Disposal
All of the above

35. Which of the following would be the correct entries for the credit side of the inventory account

Bank/Accounts Payable/Cost of Sales/Advertising/Drawings/Inventory Loss/Inventory Write Down
Bank/Accounts Receivable/Cost of Sales/Advertising/Drawings/Inventory Loss/Inventory Write Down
Accounts Payable/Cost of Sales/Advertising/Drawings/Inventory Loss/Inventory Write Down
Accounts Payable/Cost of Sales/Accounts Receivable/Advertising/Drawings/Inventory Loss/Inventory Write Down

36. Select the correct set of titles to be recorded in the credit side of the Inventory Account

Bank/Accounts Payable/Cost of Sales/Inventory Gain
Bank/Accounts Payable/Cost of Sales/Inventory Loss/Inventory Write Down
Bank/Accounts Payable/Cost of Sales/Inventory Loss/Inventory Write Down/Advertising/Drawings
Accounts Payable/Cost of Sales/Inventory Loss/Inventory Write Down/Advertising/Drawings

37. Which of the following titles would not appear in the Accounts Receivable Account

Sales Returns/GST Clearing
Bad Debts
Sales/GST Clearing
Bank

38. Which of the following items is an incorrect title in the Accounts Receivable Ledger

Bank/Discount Expense
Sales Returns/GST Clearing
Cost of Sales
Sales/GST Clearing

39. A bad debt has been written off during the period as the Accounts Receivable has been declared bankrupt. The correct entry in the Allowance for Doubtful Debts ledger would be

Credit: Bad Debts
Debit: Accounts Receivable/GST Clearing
Debit: Bad Debts
Debit: Accounts Receivable

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