PRC-1 · Chapter 3 · Question 21 of 100
In the General Journal of 'Radiant Motors', there is a column headed 'LF' (Ledger Folio). What is its primary administrative purpose?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) To provide a cross-reference page number or code linking to the relevant ledger account.
Explanation
The Ledger Folio (LF) column records the page number or unique code of the ledger account where the entry is posted. This facilitates quick cross-referencing and traceability between the journal and ledgers.
More Ledgers and Trial Balance MCQs
- Q23When extracting a trial balance, which of the following accounts will typically present a credit balance?
- Q24Which of the following statements comprehensively defines the 'General Ledger'?
- Q25After extracting a trial balance, the accountant of 'Dynamic Corp' notices the debit column totals Rs. 500,000 and the credit column…
- Q26What is the correct double-entry sequence to formally transfer a net profit of Rs. 250,000 to the owner's equity at year-end?
- Q27Which of the following lists represents the correct sequential order of the fundamental accounting cycle?