Commercial Applications
Answer
Principal book
Reason — Ledger is called the 'Principal Book' of accounting because all entries from the journal are posted into it, where transactions of one nature are grouped under one account. This results in classification of transactions and forms the basis for preparing the trial balance and final accounts.
Related Questions
Accounting means ……………
- Keeping an account of money received
- Keeping an account of money spent
- Keeping an account of money spent and loan received.
- Keeping an account of money received and money spent.
According to the …………… principle of accounting, transactions are recorded on the assumption that the business will exist for an indefinite period of time.
- Business Entity Concept
- Dual Aspect
- Going Concern Concept
- Money Measurement Concept
The retirement of manager of the company cannot be recorded in the book of accounts, because it is not possible to estimate the financial effect of retirement. Which accounting principle would be applicable for the above statement?
- The Going Concern Concept
- The Business Entity Concept
- Money Measurement Concept
- The Dual Aspect Concept
With reference to the Dual Aspect Principle identify the correct option:
- Assets = Capital - Liabilities
- Liabilities = Assets + Capital
- Capital = Assets + Liabilities
- Capital = Assets - Liabilities