Question

Why do we write 'sundry receipts' and 'sundry payments' when posting to the bank account in the ledger?

A) To record miscellaneous income and expenses.
B) To indicate bank errors.
C) To track employee salaries.
D) To calculate interest rates.

Answer 1

Sundry receipts and sundry payments are recorded in bank account ledgers to track miscellaneous income and expenses that don't fall under other specific categories for accurate financial reporting. The correct option is A.

Step-by-step explanation:

We write 'sundry receipts' and 'sundry payments' when posting to the bank account in the ledger in order to record miscellaneous income and expenses.

This categorization allows for the tracking of various small transactions that do not fit into other specific income or expense categories. These entries provide an accurate record of all financial transactions and ensure the business can account for all miscellaneous inflows and outflows in its financial reporting. The correct option is A.