The debit side of a cash account totals Rs 75,000 and the credit side totals Rs 48,500. How is the account balanced?
Correct answer B. Balance c/d of Rs 26,500 entered on the credit side
Topic / 38 questions
Ledger MCQs
Ledger MCQs test your understanding of the ledger, the book where transactions from journals are posted into individual accounts and balanced. They suit commerce students and accounting job candidates, and each question reveals its correct answer immediately, so you can confirm debit and credit rules as you practise.
What is the normal balance of a purchases returns (returns outwards) account?
Correct answer C. Credit
Under which type of personal account does the account of a limited company or a bank fall?
Correct answer B. Artificial personal account
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Which of the following is a representative personal account?
Correct answer D. Outstanding wages account
A supplier’s account shows credit purchases of Rs 40,000. Payments of Rs 28,000 were made, goods worth Rs 3,000 were returned and a discount of Rs 1,000 was received. What is the closing balance?
Correct answer C. Rs 8,000 credit
What is the ledger that contains the personal accounts of suppliers who sell on credit called?
Correct answer B. Purchases ledger (creditors ledger)
In a ledger account, what does the abbreviation ‘c/d’ written against a balance stand for?
Correct answer A. Carried down
Because transactions are finally classified and summarised in it, the ledger is called the book of ____.
Correct answer B. final entry
A customer’s account has an opening debit balance of Rs 10,000. Credit sales to him are Rs 25,000, cash received from him is Rs 18,000 and goods returned by him are Rs 2,000. What is the closing balance?
Correct answer C. Rs 15,000 debit
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Under the traditional rules of debit and credit, what is the rule for personal accounts?
Correct answer A. Debit the receiver, credit the giver
Under the traditional rules of debit and credit, what is the rule for real accounts?
Correct answer B. Debit what comes in, credit what goes out
Under the traditional rules of debit and credit, what is the rule for nominal accounts?
Correct answer B. Debit all expenses and losses, credit all incomes and gains
Which of the following is a nominal account?
Correct answer B. Salaries account
Why is a ledger account in its simplest form often called a T-account?
Correct answer D. Its layout resembles the letter T
What is the ledger that contains the personal accounts of credit customers called?
Correct answer B. Sales ledger (debtors ledger)
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A trial balance is prepared to check the arithmetical accuracy of which balances?
Correct answer B. Ledger accounts balances
What is the common basis for preparing a trial balance?
Correct answer C. Ledger accounts
What is the transfer of entries from the journal to ledger accounts commonly called?
Correct answer A. Posting
What does an account record in the balance of an item?
Correct answer C. Increase or decrease
In the cash book, what does it mean if the credit side of the bank account is larger than the debit side?
Correct answer C. Bank overdraft
About Ledger MCQs
This topic covers how accounts are kept and balanced. Questions ask about the normal balance of accounts, such as debit balances for assets and expenses like rent, and credit balances for liabilities, capital and income. You will also see the ledger as the base for preparing a trial balance, what an account records about changes in an item, and how to read a bank account where the credit side is larger, indicating an overdraft. Classification items cover real, personal and nominal accounts. These rules are tested in commerce lecturer, banking and audit officer tests.
Exams that include Ledger MCQs
Pakistan
- PPSC
- FPSC
- NTS
- Banking job tests
- Lecturer tests
India
- SSC CGL
- IBPS Clerk
- UGC NET
Bangladesh
- Bank job exams
- Bangladesh Bank recruitment
- BCS
Frequently asked questions
What is the normal balance of an asset account?
An asset account normally has a debit balance. Increases in assets are recorded on the debit side and decreases on the credit side. Expense accounts also have normal debit balances, while liability, capital and revenue accounts normally have credit balances. Knowing these rules makes trial balance questions much easier.
Why is the ledger called the book of final entry?
The ledger is called the book of final entry because transactions are first recorded in the journal or subsidiary books and then posted to the relevant ledger accounts. The balances in the ledger are used to prepare the trial balance and, from it, the final accounts such as the income statement and balance sheet.
Last reviewed October 2026