Class 11 Accountancy TS Grewal Solutions Chapter 5 - Journal
Bank reconciliation is an important concept in business which is required to tally the internal business financial records with the record provided by the bank. This process can detect any discrepancies due to bank error or timing difference. TS Grewal Class 11 Solutions Chapter 5 journal is geared towards providing a thorough knowledge of this topic to the students. The procedure of preparing bank statements and various kinds of errors that can happen in this process are explained in a detailed manner which will make it simpler for students to grasp the theoretical and practical application of this concept.
FAQs on TS Grewal Solution for Class 11 Accountancy Chapter 5
1. According to Class 11 Accountancy TS Grewal Solutions, what are journals?
Books of original entry are journals in which a company first records all of its business transactions. The data from the original entry books are aggregated and placed into the general ledger, which is then used to create the trial balance and financial statements. A diary is a journal of original entries that records transactions as they occur. Each journal post must include a source document. Keeping a diary ensures that all transactions are documented and saved in one place, as well as that the debit and credit for each transaction are properly related.
2. What are the features of journals, according to Class 11 Accountancy TS Grewal Solutions?
A journal has the following characteristics:
Chronology: The journal entries are stored in chronological order, which makes it much easier to examine the transactions.
Double Entry System: Journal entries adhere to a system in which each transaction is recorded on both the debit and credit sides. It exemplifies a dual entrance system. The identical amount is deducted from one account and credited to the other.
A daybook is a diary that records transactions daily for consistency and simplicity of use.
Compound Entry: A single entry may include two or more accounts on the same day, and a journal may have many connected transactions.
Explanation: Each transaction is accompanied by a summary known as the narrative (within brackets). It aids in explaining the transaction's nature and purpose.
3. According to Class 11 Accountancy TS Grewal Solutions, what are the components of journals?
Date of Transaction: It is required to state the date on which the same transaction happens or is being recorded in the books of accounts before writing a transaction in the diary.
Relevant Party & Transaction Details: If the transactions are recorded in the special journal, the transaction should mention the party with whom the credit transaction was placed, i.e., the supplier in the case of a purchase transaction, but if the transaction is booked in the general journal, the transaction should mention the relevant parties details.
The narrative accompanying the transaction offers the transaction data as well as describes the rationale for the transaction or the nature of the transaction in a concise manner.
Provide a Link to the Original Document: It should include a reference to the original document on which the transaction was recorded, such as an invoice number in the instance of purchase.
4. What are the benefits of the journal according to Class 11 Accountancy TS Grewal Solutions?
The Benefits of Original Entry Books
The following are some of the benefits of original entry books.
- Daily transactions are documented in books of original entry, reducing the possibility of omission.
- The books of original entry include transaction data as well as a summary, which aids in tracking any errors in recording and because the books keep all of the transaction information, as well as a summary of the transaction in the narrations, any inaccuracy in the transaction, maybe immediately spotted during the postage in the individual ledgers account.
- Transactions are recorded in chronological sequence, which aids in categorising them into distinct ledgers.
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5. Give an overview of the chapter 5 Journal as discussed in Class 11 Accountancy?
In Class 11 Accountancy Chapter 5 TS Grewal solutions, students gain the essential information and definition of bank reconciliation. They can comprehend the significance of the bank reconciliation procedure and the many sources of disparities in the cash book and passbook.
The difference created by a time gap in reconciling transactions - Students will learn about the many reasons that might generate a time gap in recording a transaction. For example, a cheque that was written but not given to the bank.
Errors made when recording transactions - students will grasp that there are two sorts of faults that might occur during a transaction: errors made by the business and errors made by the company. There are brief explanations of how each sort of mistake might occur.