After journal entries are posted, the reference column
a. of the general journal will be blank.
b. of the general ledger will show journal page numbers.
c. of the general journal will show “Dr” or “Cr”.
d. of the general ledger will show account numbers.
The correct answer and explanation is :
The correct answer is b. of the general ledger will show journal page numbers.
Explanation:
In accounting, after journal entries are posted from the general journal to the general ledger, the reference column in the general ledger will contain the page numbers from the journal where the entries were initially recorded. This is an important feature for ensuring the traceability and accuracy of financial records. Let’s break down the reasoning for this choice and why the others are incorrect.
- a. of the general journal will be blank: This is incorrect. The reference column in the general journal typically contains the ledger account numbers to which the entries have been posted, not left blank. These account numbers indicate where each specific entry has been posted in the general ledger.
- b. of the general ledger will show journal page numbers: This is correct. Once journal entries are posted to the general ledger, the reference column of the ledger will show the page number of the general journal where the original entry can be found. This helps to maintain a clear audit trail, ensuring that the general ledger entries are linked to the source document (the journal). By including the page number, accountants can easily locate the original entry and verify its correctness if necessary.
- c. of the general journal will show “Dr” or “Cr”: This is incorrect. The general journal records both debit and credit amounts in the journal entry itself, but it does not use the reference column to show “Dr” or “Cr.” Instead, these are shown in the appropriate debit and credit columns of the journal. The reference column in the journal typically contains the ledger account numbers to which the entries are posted.
- d. of the general ledger will show account numbers: While this might seem like a valid answer, it is not entirely accurate in this context. The general ledger does indeed display the account numbers associated with each entry, but the reference column is specifically used to indicate the journal page numbers from which the entries are derived, not the account numbers themselves.
In summary, the purpose of the reference column in the general ledger is to link back to the source of the entries, which in this case, is the general journal. Showing the journal page numbers allows accountants to easily track the origin of the entries and ensure accuracy and transparency in financial reporting.