Posting reference (L.F.) concept MCQs Quiz | Class 9
This is a multiple-choice quiz for Class IX students studying Elements of Book-Keeping & Accountancy (Code 254), focusing on Unit 4: Journal. The questions cover the concept of Posting Reference (Ledger Folio), its role in ledger folio linkage, and its importance in tracking the posting of transactions. Attempt all questions and click ‘Submit Quiz’ to see your score and download a PDF of your answers.
Understanding the Posting Reference: Ledger Folio (L.F.)
In accounting, maintaining a clear and traceable record of transactions is crucial. The Ledger Folio (L.F.) is a simple yet powerful tool that ensures this traceability. It acts as a bridge, connecting the book of original entry (the Journal) with the principal book of accounts (the Ledger).
What is Ledger Folio (L.F.)?
The Ledger Folio (L.F.) is a column in the Journal that is used to record the page number or folio number of the ledger account where the posting has been made. ‘Folio’ is an old term for a page. When a transaction recorded in the Journal is transferred (or ‘posted’) to its respective account in the Ledger, the page number of that ledger account is written in the L.F. column of the Journal.
Key Points about L.F.:
- Location: The L.F. column is located in the Journal, typically after the ‘Particulars’ column and before the ‘Debit Amount’ column.
- Purpose: Its primary purpose is to provide a cross-reference. It helps anyone reviewing the accounts to quickly locate the corresponding entry in the ledger.
- When is it filled? The L.F. column is filled at the time of posting, not at the time of recording the journal entry. A blank L.F. column indicates that the journal entry has not yet been posted to the ledger.
- Importance in Auditing: For auditors, the L.F. is vital. It allows them to easily trace transactions from the journal to the ledger and vice-versa, which helps in verifying the accuracy and completeness of the accounting records.
The Ledger Folio Linkage: L.F. and J.F.
The cross-referencing system is a two-way street. Just as the Journal has an L.F. column, the Ledger has a corresponding column called the Journal Folio (J.F.). The J.F. column in the ledger records the page number of the Journal from where the entry has been posted.
| Feature | Ledger Folio (L.F.) | Journal Folio (J.F.) |
|---|---|---|
| Found In | Journal | Ledger |
| What it Records | Page number of the Ledger account | Page number of the Journal entry |
| Purpose | To link a Journal entry to its Ledger posting | To link a Ledger posting back to its original Journal entry |
Tracking the Posting Process
The L.F. system makes the process of posting transparent and easy to track.
- An entry is made in the Journal. The L.F. column is left blank.
- The accountant opens the relevant ledger account (e.g., Cash Account on page 5 of the ledger).
- The entry is posted from the Journal to the Ledger account.
- Immediately after posting, the accountant writes the ledger page number (e.g., ‘5’) in the L.F. column of the Journal, and the journal page number in the J.F. column of the Ledger.
- This simple act confirms that posting is complete for that part of the entry and establishes a permanent link.
Quick Revision Points:
- L.F. stands for Ledger Folio.
- It is a column in the Journal.
- It records the page number of the account in the Ledger.
- It is filled during the process of ‘posting’.
- It provides a cross-reference for easy tracking and auditing.
- The corresponding column in the Ledger is the Journal Folio (J.F.).
Extra Practice Questions:
- If a journal entry has not been posted, what will be the status of its L.F. column?
- Explain in your own words why an auditor would find the L.F. and J.F. columns useful.
- What is the main difference between journalizing and posting?
- If the Sales Account is on page 45 of the Ledger, and a sale on credit to Ram is recorded in the Journal on page 12, what would be the L.F. number in the Journal and the J.F. number in Ram’s account and the Sales account?
- Does the L.F. column have any monetary value? Why or why not?
