NCERT Solutions for Class 11 Accountancy Chapter 3 Recording of Transcations 1

Top

Download PDF

FAQ

Class 11 Accountancy NCERT Solutions Chapter 3 Recording of Transcations 1

Bookmark added to your notes.

View Notes

The NCERT Solutions Class 11 Accountancy Chapter 3 are available on Vedantu in a PDF format. Download the NCERT Solutions for Class 11 Accountancy Chapter 3 PDF from Vedantu for free and refer to them to develop a conceptual understanding of the topics covered in this chapter. Our subject-matter experts have prepared these NCERT Solutions in an easy to understand manner that helps you to analyze and revise the NCERT Accountancy Book Class 11 Solutions Chapter 3 better. You can rely upon these NCERT Solutions for effective exam preparation.
(Image to be added soon)

NCERT Accountancy Class 11 Solutions

What is Accounting?

Accounting is termed as a language of business that is used to communicate the information or the results of business operations to several interested people like investors, creditors, government, and so on. The principal objective of accounting is to analyze the profit or loss position of the business. It is very essential to maintain a systematic record of business transactions in accounting books.

Vedantu’s study material for NCERT Accountancy Book Class 11 Solutions Chapter 3, cover several practical examples that will help you to understand the concepts of accounting.

Advantages of Accounting

Accounting records are considered as “the eyes and ears of a business”. The following are the advantages of accounting.

Accounting helps maintain organized documentation of a large number of monetary transactions.
Accounting facilitates in determining the net profit or net loss by maintaining a record of all the transactions.
Accounting records help carry out the comparison of the results of business every year.
Accounting records facilitate in identifying and recognizing if frauds occurred in a business organization.
Accounting records help the organization to monitor its operations.

To leverage your knowledge on Accountancy and transaction recording, download and refer to the NCERT Accountancy book Class 11 Solutions PDF from Vedantu.

Debit and Credit Rules

Debit and credit rules are the universal accounting conventions that are being accepted all over the world. The credit entries denote the sources of financing and the debit entries denote the uses of financing.

Liability denotes the source of funds. Therefore, when liability increases it is being credited, and when it decreases it is being debited. Likewise, equity also denotes the source of funds. Therefore, it is also being credited for the increase and debited for the decrease. Assets denote the use of funds. So, when an asset increases, it is being debited and when it decreases, it is credited. Expense decreases the equity so an increase in expense is debited. Income increases equity, so an increase in income is credited.

Vedantu provides more information on these topics in the NCERT Solutions for Class 11 Accountancy Chapter 3 Recording of Transactions 1. You can download and consult the PDF of Accountancy Class 11 Chapter 3 from Vedantu to learn more about Accountancy concepts.

Solved Example

Show the accounting equation from the following transactions.

Commenced business with cash Rs. 50,000.
Sold goods to Raheem on credit (cost Rs.400) Rs. 500.
Paid rent in advance Rs.500.
Salary outstanding Rs.100.

These topics are explained thoroughly in the NCERT accountancy book class 11 solutions chapter 3, and you can try solving the exercise questions on this topic and compare your answers with that of the NCERT Solutions to check if you have a profound understanding of these topics. Vedantu’s NCERT Accountancy book Class 11 Solutions PDF comes with a complete package of MCQs, practical examples, and theory.

Fun Facts:

Did you know that Bookkeeping is the only word in English that contains three sets of twofold letters consecutively?
Bubblegum was created by an accountant, Walter Diemar in 1928. It was brilliant pink in shading since that was the main colour he needed to hand at that point.

Do you need help with your Homework? Are you preparing for Exams?

Study without Internet (Offline)

Download PDF

NCERT Solutions for Class 11 Accountancy Chapter 3 Recording of Transcations 1 part-1

Loading More Solutions...

FAQ (Frequently Asked Questions)

1. Write the procedure for posting the ledger accounts.

Ledger is an accounting book where the journalized transactions are being classified. The process of transferring the debit and credit items from the journal to the ledger in their respective accounts is called posting.

Procedure for posting the ledger accounts:

Bookkeepers can select entries of any specific side either debit or credit first and then post all the transactions of that side in the ledger accounts.
Bookkeepers can post entries based on a specific amount and can complete all the debits and credits of that specific amount and then move onto the other account.
Bookkeepers can post entries in accounts in a sequence of journal entries. This method is effective as the entries are posted as and when they are recorded in the journal.

2. Write in detail about the double-entry bookkeeping system.

In the 15th century, Venetian merchants initiated the concept of the double-entry system of bookkeeping. It is the only system that records the aspects of a transaction.

In the double-entry system, the transactions and events are recorded with the help of the ‘debit-credit rule’. This rule provides instructions for recording or making changes in the elements of balance sheets (liability, equity, and assets). The double-entry system explains the two-fold effect of every transaction. Vedantu’s NCERT Solutions for Class 11 Accountancy Chapter 3 provide some of the best practical examples that help you analyze the concepts better.