PRC-1 · Chapter 3 · Question 80 of 100
In a standard manual ledger account, there is a column labeled 'Folio'. What is its primary purpose?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) To provide a cross-reference code linking back to the relevant book of prime entry.
Explanation
The folio column is used for cross-referencing. It records the page or reference number of the original journal or day book, creating a traceable audit trail between the records.
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