Maharashtra Board Class 11 Book Keeping and Accountancy Chapter 3 Journal PDF Download

Journal

Contents

3.1 Meaning, Importance and Utility of Accounting Documents.

3.2 Meaning, Definition, Importance and Utility of Journal.

3.3 Specimen of Journal.

3.4 Recording of Journal entries with GST.

Competency Statements

Students are able to prepare accounting documents.

Students can get ability to analyse the effect of each transactions.

Students become familiar with the standard form and arrangement of Journal entries.

Students can calculate GST on purchase of goods.

Students can calculate GST on sale of goods.

Students are able to prepare Journal Entries correctly.

3.1 Introduction

Book Keeping records all day to day business transactions on the basis of supporting documents.

The word document means a piece of paper which provides detailed information as a legal nature. Document is a legal proof for recording every transaction e.g. when we purchase computer for cash ₹30,000 we get the cash memo, this cash memo is a source document. The person or accountant first ensure the reliability and legal proof of the transactions recorded in the books of accounts. Every entry in books of accounts is supported by the relevant documentary evidence. These papers are called Accounting documents. The accounting documents are the base for entering business transactions into the books of accounts.

Importance and Utility of Accounting Documents

1. Documents are necessary for recording all transactions into the books of accounts.

2. The accounting transactions are recorded in proper mode and computer based.

3. Accounting documents are stored in physical files or in software.

4. Accounting documents are legal evidence for court matters.

5. Accounting documents are required for charity commissioner's office.

6. Accounting documents are required for payments of state government and local body authority.

Teacher's Note

Documents are like proof for every business activity. Just like your school attendance register is proof of your attendance, business documents are proof of all transactions done.

Exam Trick

Remember: Documents = Legal Proof. Keep all bills and receipts safe because they are your business proof, just like your mark sheet is proof of your studies.

Points to Remember

Documents are written proof of every business transaction.
Every document must be checked for correctness before use.
Documents are kept safe for at least 6 years.
Documents help in finding mistakes in accounting.
Without documents, we cannot record any transaction.

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