The Ledger

Question 1

What is the ledger?

Accepted Answer

The book that contains all the accounts of a business — The ledger is the book that gathers all the accounts of a business.

Question 2

In a T-account, the left side represents the

Accepted Answer

debit — The left side of a T-account is the debit, the right side the credit.

Question 3

The process of transferring entries from a journal into the ledger accounts is called

Accepted Answer

posting — Posting is the transfer of entries from a book of first entry to the ledger.

Question 4

The accounts of debtors (customers) are kept in the

Accepted Answer

Sales Ledger — The Sales Ledger holds the accounts of debtors (credit customers).

Question 5

The accounts of creditors (suppliers) are kept in the

Accepted Answer

Purchases Ledger — The Purchases Ledger holds the accounts of creditors (credit suppliers).

Question 6

The balance that closes an account at the end of a period is written as the

Accepted Answer

balance carried down (balance c/d) — The balance c/d closes the account; the balance b/d opens the next period.

Question 7

A credit sale to a customer is posted as

Accepted Answer

debit the customer's account, credit the Sales account — The customer owes money (a debtor/asset) — debit; the sales income — credit.

Question 8

A Cash account has debits of RM8,000 and credits of RM5,200. What is the balance carried down?

Accepted Answer

RM2,800 — Balance = RM8,000 − RM5,200 = RM2,800 (a debit balance).

Question 9

Capital, expense and income accounts are kept in the

Accepted Answer

General Ledger — The General Ledger holds accounts other than debtors and creditors.

Question 10

After the balance is carried down on the credit side, the balance brought down in the next period appears on the

Accepted Answer

debit side — The balance b/d appears on the side opposite the balance c/d — here, the debit side.

Debit	Credit
Capital 1 Jan 10,000	Purchases 3 Jan 4,000
	Balance c/d 6,000