General Ledger: Practical Problems and Solutions

Problem 1 The first problem in this set of three focuses on opening a factory ledger. The following balance appeared in the books of Marry & Company on 31 December 2018. Cash $39,000 Accounts Receivable 15,000 Stores 21,000 Work-in-process Materials 10,000 Work-in-process Labor 7,000 Work-in-process Factory Overhead 8,000 Finished Goods 14,000 Machinery & Equipment 1,36,000 … 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 a Ledger? Before explaining what ledger accounts, it’s worth briefly introducing the ledger. Journals are used to record transactions chronologically, but journal entries only show the effect of individual transactions. Business owners, however, don’t just want to know about the effects of individual transactions on financial statements. They are also interested in the … Read more

General Ledger MCQs

Take this quick test on the general ledger to help you prepare for your exams, interviews, or different tests. If you find it difficult to answer any of these multiple choice questions (MCQs), you can read about the general ledger on this website. You can also check: General Ledger short questions General Ledger fill in the blanks