General Ledger Practical Problems and Solutions

Problem No.1: (Opening a Factory Ledger) The following balance appeared in the books of Marry & Company on December 31, 2018.   Cash $39,000 Accounts Receivable 15,000 Stores 21,000 Work-in-process Materials 10,000 Work-in-process Labour 7,000 Work-in-process factory overhead 8,000 Finished Goods 14,000 Machinery & Equipment 1,36,000 Land & Building 2,40,000 Capital Stock $2,50,000 Retained Earnings … Read more

Subsidiary Ledger

What is a Subsidiary Ledger? Subsidiary Ledger is a ledger that contains backup or more detailed accounts than does the general ledger. The Need for Subsidiary Ledgers The need for timely and accurate information, as well as good internal control procedures, requires that certain backup accounts be maintained. To illustrate, management needs to know not … Read more

Difference between Journal and Ledger

In this article, we are providing the difference between Journal and Ledger in the form of a comparison chart. Journal Ledger 1 In journal, the transactions are recorded chronologically. In ledger, the transactions are recorded in classified form. 2 The process of entering a transaction in Journal is called “Journalizing”. The process of entering a … Read more

Ledger accounts

What is Ledger? Before knowing What ledger accounts are? Let us take a brief introduction to Ledger. Journal is used to record the transactions chronologically. But Journal only gives the effect of individual transactions. The owner of a business, however, is not only interested in knowing about the effects of individual transactions on financial statements … Read more

General ledger – MCQs

Take a quick Multiple Choice Questions (MCQs) test about General Ledger. These MCQs can help you to prepare for your exams, interviews and different tests. Just click the “start quiz” button and start general ledger MCQs quiz. If you find difficulty in answering these questions, read ‘General Ledger‘ chapter thoroughly from explanation section of the website. … Read more