BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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an imprest system
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a statement of affairs
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a bank reconciliation statement
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a self balancing ledger system
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Detailed explanation-1: -Control account is an easy way to locate errors from ledger account. Control account is also called self balancing ledge. The total debtors and creditors can be easily calculated.
Detailed explanation-2: -A self-balancing ledger is one whose balances, when extracted, form a complete trial balance. In other words, each ledger is self-balancing. Under this system, each ledger is maintained under double entry principle, i.e., the principle of double entry is completed within the ledger itself.
Detailed explanation-3: -Under this system ledgers are made self-balancing by opening adjustment accounts. When goods of Rs 1, 000 sold to Ram, then Ram’s Account is debited with Rs 1, 000 in Sales Ledger and Goods Account is credited with Rs 1, 000 in General Ledger.
Detailed explanation-4: -Companies use a set of self-balancing accounts called the general ledger, while government accountants use self-balancing accounts as part of fund accounting.