CBSE Class 11 Accounting-Recording of Transactions

CBSE Class 11 Accounting-Recording of Transactions. Students can download the specific chapters from the CBSE and NCERT text books from studiestoday.com. Please refer to the attached file to access the chapters. The books and specific chapters have been collected by the tutors on studiestoday for the benefit of CBSE students. They can access these chapters anywhere and use them for their studies.

Accounting-Recording of Transactions

Books of Original Entry

The books of accounts where in transactions are recorded for the first time from a source document are called ‘Books of Original Entry’. A document which provides evidence of the transactions is called a source document or voucher,for e.g. cash memo, invoice, sales bills, pay-in-slips, cheques, salary slips, debit notes, credit notes, receipts etc. We will discuss about vouchers in greater detail in Chapter 4. Journal is one of the basic books of original entry in which transactions are originally recorded in a chronological order, i.e. one after the other in order of their happening according to the principles of double entry system. When the size of the business is small then all its transactions can be recorded in a single journal. But as the size of the business grows, it no longer remains possible to record all the transactions in a single journal. In such a situation more than one journal may be used - each such journal is called a sub-journal. A particular type of transaction may be recorded in a sub-journal, or subsidiary book, for e.g., all credit purchases of goods may be recorded in one journal called the purchases book and all credit sales of goods may be recorded in another sub-journal called sales day book. These journals are called as ‘Special purpose subsidiary books’ or ‘books of original entry’. The important types of subsidiary books are Cash Book, Purchases Book Sales Book, Purchases Return Book, Sales Return Book, Bills Receivable Book, Bills Payable Book and Journal Proper.

These books are called books of original entry because transactions are first of all recorded in these books. An enterprise need not maintain all of the above books - it may maintain any of the above books, according to its needs and requirements.

2.2. Journal

Journal is the basic book of original entry. Transactions in the journal are recorded in chronological order, i.e., the transaction which happened first followed by the next transaction and so on. The journal provides a date-wise record of all the transactions with details of the amounts debited and credited and the amount of each transaction.

Maintenance of the different columns of the journal has been discussed below.

(i) Date: The first column in the journal is the date column. In this column the date on which the transaction took place is entered. The year and month is written only once till they change. First the year of the transaction is written followed by the month and lastly the date of the transaction is entered.

(ii) Particular: In the ‘particular’ column, the particulars of the transactions are recorded. We know that every transaction affects at least two accounts - one account is debited and the other account is credited. First the account to be debited is identified and the name of this account is recorded in the particulars column. After writing the name of the account to be debited in the first line in the particular column, in the second line we write the name of the account which is to be credited after its identification. Some space is to be left before we start writing the second line. This is done just to clearly distinguish between the account(s) to be debited and the account(s) to be credited. The word ‘To’ is prefixed to the name of the account to be credited. After writing the names of the accounts to be debited and credited a small explanation of the transaction called ‘Narration’ is written. Narration explains the reasons for the happening of the transactions. A line is drawn after the narration which touches both the date column on the one hand and ledger folio column on the other hand indicating that the recording of the transaction is completed.

(iii) Ledge Folio or L.F. : All entries from the journal are posted in the ledger which contains different accounts. In the L.F. column the folio number of the ledger where the posting has been done is recorded. For example, suppose the ‘Machinery Account’ in ledger appears at folio number 151, if by a journal entry Machinery Account has been debited than 151 will be written in the L.F. column against Machinery Account which will indicate that this transaction has been debited at folio number 151 in the ledger where ‘Machinery Account’ exists.

 

Please refer to the link below - CBSE Class 11 Accounting-Recording of Transactions

Tags: 

 


Click to View or Download pdf file
Click for more Accountancy Study Material

Latest NCERT & CBSE News

Read the latest news and announcements from NCERT and CBSE below. Important updates relating to your studies which will help you to keep yourself updated with latest happenings in school level education. Keep yourself updated with all latest news and also read articles from teachers which will help you to improve your studies, increase motivation level and promote faster learning

CBSE Board Exams in July Press Release

CBSE has released press note for the dates for the CBSE Board exams for Class 10. CBSE said “With regards to conduct of Class X examinations several queries are being received by the CBSE. In this context, it is once again reiterated that remaining examinations of...

CBSE Recommends Arogya Setu App, Writes To School Principals

Written recommendation from CBSE to school principals for initiating the Arogya Setu App! New Delhi:  The Central Board of Secondary Education has advised all school principals through a written communication recommending the “Arogya Setu App” and Health Ministry's...

Class 12 Board Exams Datesheet Announced

CBSE has announced the datesheet of the remaining class 12 board exams, see below:  

Class 10 Board Exams to be held

The CBSE board has announced that there is no change in the decision of conducting the CBSE board exams for the 29 subjects, which were canceled due to coronavirus crisis. So when the lockdown gets relaxed completely, the board will conduct the exams for the students,...

Board Exams Class 10 and Class 12 Datesheet 2020

CBSE has announced the datesheet for the remaining exams of class 10 and class 12 exams. The exams are going to start in July. The class 10 and 12th board exams will be conducted for the remaining 29 papers from July 1 to July 15, 2020, at various centers nominated by...

Checking of Boards Answer sheets starts today

CBSE has instructed almost 3000 schools to start the evaluation work for class 10th and class 12th board exam answer sheets from today. The checking of answer sheets for class 10th and class 12th was stopped earlier due to covid crisis in the country. Now in order to...

×
Studies Today