A ledger is a book of: MCQ with Answer and Explanation

A ledger is a book of:

A. Adjusting entry

B. Original entry

C. Rectification entry

D. Final entry

Answer: Option D

The ledger is the book of final entry because transactions are ultimately classified and posted here from the journal.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1 Report Error

If the purchase of a printer for ₹12,000 is recorded in the purchases book, the error is:

A. Error of commission

B. Error of omission

C. Error of principle

D. Compensating error

Correct Answer: Option C

Explanation:
Printer is an asset, should be capitalised. Recording in purchases book treats it as expense, violating accounting principles.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2 Report Error

A partner's current account will have a credit balance if:

A. His drawings exceed his share of profit

B. He has withdrawn all profits

C. Firm incurs loss

D. His share of profit and interest on capital exceed his drawings

Correct Answer: Option D

Explanation:
Current account credit balance indicates net amount owed by firm to partner, i.e., profits and interest etc. exceed drawings.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3 Report Error

The 'Tax Information Network' (TIN) in India is managed by:

A. RBI

B. GSTN

C. CBDT

D. NSDL

Correct Answer: Option D

Explanation:
TIN was established by NSDL for collection, processing, and monitoring of TDS.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping