Ledger Interview Preparation Guide
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Ledger frequently Asked Questions in various Ledger job Interviews by interviewer. The set of questions here ensures that you offer a perfect answer posed to you. So get preparation for your new job hunting

59 Ledger Questions and Answers:

1 :: What is control ledgers?

In a business, sometimes it is not feasible to carry accounts of all the suppliers and customers in the main ledger. In such cases apart from General or main ledger, the control ledgers are maintained. Control ledgers records the individual accounts. In the end of the period, balance shown in the main ledger has to tally with the balance in the individual ledger accounts maintained in the control ledger.

2 :: What are the purposes of maintaining control ledgers?

Purposes of maintaining control ledgers are:

- Sundry Debtors
- Sundry Creditors
- Advances to Staff

3 :: What is a Ledger?

Ledger is the book where the transactions of similar nature pertaining to a person, asset, liability, income or expenditure are drawn from the journal or subsidiary books where the transactions are recorded in a chronological order and posted account wise in the Ledger account. Ledger maintains all types of accounts i.e. Personal, Real and Nominal Account.

4 :: What is Ledger Posting?

All the business transactions are first recorded in Journal or Subsidiary books in a chronological order when they actually take place and from there the transactions of similar nature are transferred to Ledger and this process of transferring is called as Ledger Posting.

5 :: What is Balancing of Ledger Account?

To know the net effect of all the business transactions recorded in the ledger account, the accounts need to be balanced. Thus, Balancing of Ledger Account means the balances of Debit and Credit side should be equal and this involves following steps:

-First total of both the sides are taken.

-Secondly difference between the totals of both the sides is calculated.

-If the debit side is in excess to the credit side then place the difference on the credit side by writing By Balance c/fd.

- If the total of credit side is in excess to the debit side, place the difference on the debit side by writing To Balance c/fd.

-After placing the difference on the appropriate side, make sure the totals of both the sides are equal.

6 :: Tell me reconciled checks display in bank reconciliation. How do I get rid of them?

To remove these checks from Bank Reconciliation, you must reconcile them outside of Bank Reconciliation.

7 :: Explain Journal & payment for entries service tax credit?

When we are making a payment for services which include service tax, Then entry will be

1. Paid to Port trust for haulage, tipping, sidding etc charges including Service Tax

Party A/c ( Port Services) Dr. 100000
Service tax Credit A/c Dr. 12360
To Bank A/c 12360

2.When making any payment of service tax after availing Servcie Tax Credit

Service Tax A/c Dr. 15000
To Service tax Credit a/c 12360
To Bank A/c 2640

3.When we receive refund

Bank A/c Dr. 12360
To Srevice Tax Credit A/c 12360

8 :: Tell me why depreciation is not charged on land?

Land is such an asset whose value goes on increasing, unlike other assets whose value gets reduce over a period of time. depreciation is charged on assets so that when in future , asset will be replace we will have money to purchase new asset. But in case of land this not happens that is why depreciation is not hcarged on land

9 :: Explain Service Tax Entry in SAP?

For service provider portion
Expense A/C Dr
Service tax deposit A/C Dr
To Creditor A/C
For Service Receiver portion
First you have to create a service tax payable A/C and a vendor A/C in the name of govt. Then pass the following entries

At the time of booking exp.
For liability creation
1)ST payable A/C dr
To vendor a/c
At the time of payment
For payment
2) vendor a/c dr
To bank a/c
For availment of credit
3) ST deposit a/c dr
To ST payable a/c
(OR) otherwise pass manual entry
ST deposit a/c dr
To bank a/c
Note: st deposit a/c is Input credit a/c

10 :: Explain Impact in books at the time of merger?

Problem statement- There are 2 Regions in a country REGION X & REGION- Y REGION X is closed and GL Trial Balance (TB) is transferred to REGION Y books ( X-TB is uploaded in Y books like a journal we do normally)- No Sub Ledger (SL) level transfer was done There was 1 invoices lying AP SL in X books ( xx722002 )- for 1000 GBP When TB was uploaded in Y books xx722002 was automatically credited by 1000 GBP in Y books Questiion 1- in this scenario are we going to have a mismatch in AP-SL of Y books if yes then how to correct the same. Question-2- can we transfer the SL of X to Y without impacting the P&L & B/S ( creditors account)??