What does the ledger folio column in a journal mainly show?
Correct answer: B. The page reference of the ledger posting
- A. The value of closing stock
- B. The page reference of the ledger posting
- C. The date of the next transaction
- D. The total of the trial balance
Explanation
The ledger folio column provides a cross-reference to the page or account location where the journal entry is posted. It helps trace transactions between the journal and ledger.
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About Ledger Accounts and the Trial Balance
Ledger accounts collect transactions under individual headings and use debit and credit sides to determine balances. The trial balance lists those balances to check arithmetical agreement before financial statements are prepared, but it does not reveal every error, such as complete omission, compensating errors or entries made in the wrong account.
Practise Ledger Accounts and the Trial Balance
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