PRC-1 · Chapter 3 · Question 65 of 100
In manual bookkeeping, 'balancing an account' specifically refers to the process of:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Equalizing the debit and credit totals by inserting a 'carried down' (c/d) balance, which is then brought forward for the next period.
Explanation
Balancing an account involves finding the difference between the debit and credit sides, inserting a balance c/d to make both totals equal, and bringing that balance down (b/d) to start the next period.
More Ledgers and Trial Balance MCQs
- Q67At the end of the month, the total of the Purchases Day Book is Rs. 120,000. How is this periodic total posted to the General Ledger?
- Q68The Sales Day Book shows a monthly total of Rs. 350,000. What is the correct double-entry for posting this total to the General Ledger?
- Q69The total of the 'Discount Allowed' column in the cash book is Rs. 4,500 for the period. Where is this total posted in the General Ledger?
- Q70The total of the 'Discount Received' column in the cash book is Rs. 3,200. What is the correct posting for this total in the General Ledger?
- Q71An invoice for Rs. 5,000 sent to a customer was completely lost and never entered into any book of prime entry or ledger. What type of…