NCERT Class 11 Accountancy - Recording of Transactions II

NCERT Class 11 Accountancy - Recording of Transactions II.Download NCERT Chapters and Books in pdf format. Easy to print and read. Copies of these textbooks may be downloaded and used as textbooks or for reference. Refer to other chapters and books at other links (NCERT now providing you soft copies of all textbooks of all subjects from class first to twelfth online). 

Recording of Transactions-II

In chapter 3, you learnt that all the business transactions are first recorded in the journal and then they are posted in the ledger accounts. A small business may be able to record all its transactions in one book only, i.e., the journal. But as the business expands and the number of transactions becomes large, it may become cumbersome to jour-nalise each transaction. For quick, efficient and accurate recording of business transactions, Journal is sub-divided into special journals. Many of the business transactions are repetitive in nature. They can be easily recorded in special journals, each meant for recording all the transactions of a similar nature. For example, all cash transactions may be recorded in one book, all credit sales transactions in another book and all credit purchases transactions in yet another book and so on. These special journals are also called daybooks or subsidiary books. Transactions that cannot be recorded in any special journal are recorded in journal called the Journal Proper. Special journals prove economical and make division of labour possible in accounting work. In this chapter we will discuss the following special purpose books:

• Cash Book

• Purchases Book

• Purchases Return (Return Outwards) Book

• Sales Book

• Sales Return (Return Inwards) Book

• Journal Proper

4.1 Cash Book

Cash book is a book in which all transactions relating to cash receipts and cash payments are recorded. It starts with the cash or bank balances at the beginning of the period. Generally, it is made on monthly basis. This is a very popular book and is maintained by all organisations, big or small, profit or not-for-profit. It serves the purpose of both journal as well as the ledger (cash) account. It is also called the book of original entry. When a cashbook is maintained, transactions of cash are not recorded in the journal, and no separate account for cash or bank is required in the ledger.

4.1.1 Single Column Cash Book

The single column cash book records all cash transactions of the business in a chronological order, i.e., it is a complete record of cash receipts and cash payments. When all receipts and payments are made in cash by a business organisation only, the cash book contains only one amount column on each (debit and credit) side.As evident from figure 4.1, the left side of the cash book shows the receipts of the cash whereas the right side of the cash book shows all the payments made in cash. The accounts appearing on then debit side for the cash book are credited in the respective ledger accounts because cash has been received in respect of them. Thus, in our example, an entry ‘cash received from Gurmeet‘ appears on the debit side of the cash book conveys that the cash has been received from Gurmeet. Therefore, in the ledger, Gurmeet’s account will be credited by writing ‘Cash’ in the particulars column on the credit side. Similarly, all the account names appearing on the credit side of the cash book are debitedas cash/cheque has been paid in respect of them. Now, notice, how the transactions in our example are posted to the related ledger accounts:

4.1.2 Double Column Cash Book

In this type of cash book, there are two columns of amount on each side of the cash book. In fact, now-a-days bank transactions are very large in number. In many organisations, as far as possible, all receipts and payments are affected through bank.

A businessman generally opens a current account with a bank. Bank, do not allow any interest on the balance in current account but charge a small amount, called incidental charges, for the services rendered. For depositing cash/cheques in the bank account, a form has to be filled, which is called a pay-in-slip. (refer figure 4.2) It contains a counterfoil also which is returned to the customer (depositor) with the signature of the cashier, as receipt.

The bank issues blank cheque forms, to the account holder for withdrawing money. (refer figure 4.3) The depositor writes the name of the party to whom payment is to be made after the words Pay printed on the cheque. Cheque forms have the printed word bearer, which means payment is to be made to the person whose name has been written after the words “pay” or the bearer of the cheques. When the world ‘bearer’ is struck off by drawing a line, the cheque becomes an order cheque. It means payment is to be made to the person whose name is written on the cheque or to his order after proper identification.

 

Please refer to attached file for NCERT Class 11 Accountancy - Recording of Transactions II

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

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...

CBSE Board 2020 Important announcement regarding rescheduling of Class 10 12 Board Exams

CBSE Board Exams 2020: Here's when Board will organize the CBSE Class X and Class XII Board Exams.   All the candidates appearing for CBSE Standard X and Standard XII Board Exams 2020 can cross-check the essential notice released by the board concerning the...

CBSE Recommends Arogya Setu App

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

Board Exams Class 10 and 12 Notification by CBSE

Because of the prevailing condition of spread of COVID-19 pandemic in the country, special efforts are required for conducting examinations in a safe manner. As a number of students have shifted from the district of their school to some other district in the country,...

Board Exams FAQs released by CBSE

CBSE has released very important FAQs for class 10 and class 12 students who have given the board exams. Students have been coming up with lot of queries and have lot of questions relating to what are the next steps of CBSE. The following FAQs by CBSE will help to...

Class 12 Board Exams Datesheet Announced

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

×
Studies Today