Class 11 Accountancy NCERT Solutions Chapter 3 Recording of Transactions 1
Last updated date: 02nd Feb 2023
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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.
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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.
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.
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.
FAQs on NCERT Solutions for Class 11 Accountancy Chapter 3 Recording of Transactions 1
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.
3. Where will I find NCERT Solutions for Class 11 Accountancy Chapter 3?
Students can find NCERT Solutions for Class 11 Accountancy Chapter 3 online. All NCERT Solutions are available online on Vedantu website and on the Vedantu app. The solutions are made by expert and professional subject teachers for easy understanding of concepts. NCERT Solutions cover the entire topic and help students to clear their doubts. Students can easily download the solutions on their computers and revise all concepts during the exams.
4. What is the importance of source documents in accounting?
Source documents are very useful for accounting. The importance of source documents is given here:
It helps to determine if a transaction has happened or not
It gives important information related to the date, account, and people involved in a particular transaction.
It can also be used as proof in court.
It also helps in verifying different transactions when an audit is done.
5. What are the rules followed while making debit and credit?
Debit and Credit rules are followed throughout the world. Credit means when money is deposited in the bank account and debit means when money is taken out from an account. It helps in determining the use of funds. When assets increase, money is taken out from an account and when assets reduce money is credited to an account. Students can refer to the NCERT Solutions on Vedantu. The NCERT Solutions for Class 11 Accountancy can help students to understand all concepts.
6. What is Accounting useful for Class 11?
Accounting is important for Class 11 students as it helps them to secure a job in a banking sector or any other financial institution. Accounting is used for maintaining a record of all transactions of a company. It helps in determining the net profit or loss of a company. It also helps in making a comparison of the results of the current financial year with the previous years. It helps in determining the frauds that may occur in a company.
7. What is the best way to download NCERT Solutions Class 11 Accountancy Chapter 3?
The best way to download NCERT Solutions Class 11 Accountancy Chapter 3 is to visit the Vedantu website. You will find a link to download the NCERT Solutions for Chapters 3 Class 11 Accountancy. Click on the link given to download the NCERT Solutions. You can download the solutions in the form of a PDF file and save them on your computer for free. These solutions are also available on the Vedantu app at free of cost. Students can refer to the solutions anytime or just before the exams for a quick revision for the exams.