No verified paper has been uploaded for AJKPSC-PMS Paper Accountancy & Auditing 2015 MCQs yet.
The MCQs below are drawn from the Accountancy & Auditing subject category.
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991
Which notation is used to represent the closing balance of a ledger account at the end of a period?
The term 'Balance c/d' stands for 'carried down'. It is used to indicate the closing balance of a ledger account at the end of an accounting period. This balance is then 'brought down' (b/d) to the start of the next period to represent the opening balance. This process ensures the continuity of financial records across different accounting cycles.
992
What is the resulting account balance when the total of the debit side exceeds the total of the credit side?
In ledger accounting, the balance of an account is determined by calculating the difference between the total of the debit entries and the total of the credit entries. If the sum of the debit side is greater than the sum of the credit side, the account is said to have a debit balance. This balance is carried forward to the next period on the credit side to equalize the totals.
993
What does an account indicate if the total of its debit side equals the total of its credit side?
When the sum of all debits in an account matches the sum of all credits, the net difference is zero. This signifies that the account is fully settled or closed, resulting in a zero balance.
994
Which notation is used to represent the closing balance of a ledger account at the end of an accounting period?
In ledger accounting, 'c/d' stands for 'carried down'. This notation is used to indicate the closing balance of an account that is transferred to the next period. Conversely, 'b/d' stands for 'brought down', which represents the opening balance at the start of the subsequent period. Thus, 'Balance c/d' is the standard term for the closing figure.
995
When an account has an opening credit balance, how is it recorded at the start of the period?
In ledger accounting, an opening balance brought forward from the previous period is recorded on the side corresponding to its nature. For a credit balance, the entry is made on the credit side of the account using the notation 'By Balance b/d' (brought down), indicating the starting credit position for the new period.
996
On which side of a ledger account is a closing debit balance typically recorded to balance the account?
To balance a ledger account, the difference between the total of the debit side and the credit side must be calculated. If the debit side total is greater, the account has a debit balance. To equalize the two sides, this balance is entered on the credit side as 'Balance c/d' (carried down).
997
What is the status of a ledger account where the total of the debit side equals the total of the credit side?
When the sum of all debits in a ledger account is exactly equal to the sum of all credits, the account is considered to have a zero balance. This means the account is fully settled or closed, and it does not carry a debit or credit balance forward to the next period.
998
What term describes the net difference between the debit and credit sides of a ledger account?
The balance of an account is the difference between the total of the debit side and the total of the credit side. If the debit side is larger, it is a debit balance; if the credit side is larger, it is a credit balance.
999
In a ledger account, what is the term for the balance when the total of the credit side is less than the total of the debit side?
When the sum of the debit side of an account exceeds the sum of the credit side, the difference is recorded on the credit side to balance the account. This resulting net amount is referred to as a debit balance because the total debit value is greater than the total credit value, indicating a net debit position for that specific account.
1000
Based on standard ledger balancing procedures, what is the calculated balance for the account as of June 30?
Balancing a ledger account involves totaling both the debit and credit sides and determining the difference. The balance is placed on the side with the smaller total to equate both sides. If the credit side total exceeds the debit side total, the account results in a credit balance, which is then carried forward to the next period.
