Journal Ledger and Trial Balance MCQs 2026

Journal in accounting refers to

1. A transferring journal amounts to ledger ✓
2. B brief explanation written with entry ✓
3. C balances brought forward from prior period ✓
4. D chronological record of transactions ✓

Ledger in accounting refers to

1. A collection of accounts showing balances ✓
2. B page reference in ledger index ✓
3. C entry affecting more than two accounts ✓
4. D transferring nominal accounts to capital ✓

Trial balance in accounting refers to

1. A list proving debit-credit equality ✓
2. B brief explanation written with entry ✓
3. C balances brought forward from prior period ✓
4. D temporary account for unidentified differences ✓

Posting in accounting refers to

1. A entry affecting more than two accounts ✓
2. B transferring nominal accounts to capital ✓
3. C transferring journal amounts to ledger ✓
4. D chronological record of transactions ✓

Folio in accounting refers to

1. A balances brought forward from prior period ✓
2. B temporary account for unidentified differences ✓
3. C page reference in ledger index ✓
4. D collection of accounts showing balances ✓

Narration in accounting refers to

1. A transferring nominal accounts to capital ✓
2. B chronological record of transactions ✓
3. C list proving debit-credit equality ✓
4. D brief explanation written with entry ✓

Compound entry in accounting refers to

1. A temporary account for unidentified differences ✓
2. B collection of accounts showing balances ✓
3. C entry affecting more than two accounts ✓
4. D transferring journal amounts to ledger ✓

Opening entry in accounting refers to

1. A chronological record of transactions ✓
2. B list proving debit-credit equality ✓
3. C balances brought forward from prior period ✓
4. D page reference in ledger index ✓

Closing entry in accounting refers to

1. A collection of accounts showing balances ✓
2. B transferring journal amounts to ledger ✓
3. C brief explanation written with entry ✓
4. D transferring nominal accounts to capital ✓

Suspense account in accounting refers to

1. A temporary account for unidentified differences ✓
2. B list proving debit-credit equality ✓
3. C page reference in ledger index ✓
4. D entry affecting more than two accounts ✓

Journal-ledger scenario 16: a Pakistani sole trader must correctly handle period-end adjustment

1. A accrual or deferral entry before trial balance ✓
2. B ignore the transaction until next fiscal year ✓
3. C record only one side of the entry ✓
4. D post directly to retained earnings without analysis ✓

Journal-ledger scenario 32: a Pakistani partnership firm must correctly handle error correction

1. A ignore the transaction until next fiscal year ✓
2. B identify whether debit-credit mismatch or wrong account classification ✓
3. C record only one side of the entry ✓
4. D post directly to retained earnings without analysis ✓

Journal-ledger scenario 56: a Pakistani partnership firm must correctly handle double-entry recording

1. A ignore the transaction until next fiscal year ✓
2. B record only one side of the entry ✓
3. C post directly to retained earnings without analysis ✓
4. D debit and credit both affected so the equation stays balanced ✓