Answer in one sentence only
1) What is Ledger?
Ans: A Ledger is a bound book in which all accounts are maintained in a summarized manner in one place.
2) What is ledger posting?
Ans: Ledger posting is the process of transferring an entry from journal or Subsidiary book in to the Ledger.
3) When does an account show a nil balance?
Ans: When total of debit and credit sides of an account are equal, the account shows a nil Balance.
4) What is Folio?
Ans: Folio means the page number of journal or Ledger.
5) Where is the statement form of ledger A/c is used in actual practice?
Ans: In Practice, statement form of ledger A/c is use when business uses integration computerized system. for e.g. Bank Statement.
6) Why Proprietor’s Capital account is a liability for the business?
Ans: Capital of a business is the claim of the owner to his business, both being separate entities, it is a liability for business.
7) Why does cash account never shows a credit balance?
Ans: Cash A/c is a real account and real accounts never show a credit balance and one cannot spend cash over and above of the cash received.
8) What is ‘Trial Balance’?
Ans: Trial Balance is a list of debit and credit balances of different ledger accounts as on a particular date.