Which of the following statements is INCORRECT in relation to Self-Balancing Ledger system?
This system is particularly useful where there are a limited/smaller number of customers or suppliers.
The correct answer is option 4. The statement that the self-balancing ledger system is particularly useful where there are a limited or smaller number of customers or suppliers is incorrect. The self-balancing ledger system is particularly useful in large businesses or organizations with many transactions, as it helps keep track of different ledgers and ensures accurate recording. The other statements are correct as they describe the benefits of the self-balancing system in terms of work division, fraud minimization, and error location.
Important Questions from Self Balancing Ledger System
Which of the given options best describes the truthfulness of the following statements?
Statement-1: Under Self Balancing Ledger system each ledger is prepared under double entry system and a complete trial balance can also be prepared by taking up the balances of ledger accounts.
Statement-2: Under Self Balancing Ledger system three ledger accounts are prepared, viz. General Ledger Adjustment Account, which is maintained under Debtors Ledger and Creditors Ledger and Debtors or Sales Ledger Adjustment Account and Creditors or Purchase Ledger Adjustments Accounts, which are maintained under General Ledger.
Self-balancing entries will only be made for those transactions which affect ______.
Which one of the following entry will be passed for ‘credit sales’ under self balancing ledger system?
Which of the following is/are INCORRECT match(es) of the account maintained in the context of self-balancing ledgers?
(i) Bought ledger adjustment account - Total creditors account
(ii) Sales ledger adjustment account - Total debtors account
Which of the following is an INCORRECT pair, in the context of the Adjustment Account given in General Ledger under self-balancing ledger system?
