Original entry
Final entry
Adjustment entry
Rectification entry
Answer is Right!
Answer is Wrong!
The correct answer is: A. Original entry.
A ledger is a book of original entry. It is a book of accounts that contains all the financial transactions of a business. The ledger is divided into accounts, each of which represents a different asset, liability, equity, income, or expense.
Original entries are the first entries made in the ledger to record a financial transaction. They are made from source documents, such as invoices, receipts, and checks.
The ledger is a permanent record of all the financial transactions of a business. It is used to prepare financial statements, such as the income statement and balance sheet.
The other options are incorrect because:
- B. Final entry is not a type of entry.
- C. Adjustment entry is an entry that is made to correct an error in the ledger.
- D. Rectification entry is an entry that is made to correct an error in the financial statements.