Class 11 Accountancy NCERT Solutions Chapter 4 Recording of Transactions 2
Accountancy Class 11 Chapter 4 - Recording of Transactions 2 deals with preparation, posting and recording of business transactions in different accounts like cash book, a ledger account, journal accounting, etc. The recording is a major accounting element in Accountancy which helps maintain and store books with financial details. It's a sequence of steps, beginning with analyzing and classifying each transaction based on its nature and passing entries in a journal as and when transactions occur, followed by posting in particular ledger accounts.
Vedantu’s NCERT Solutions for Class 11 Accountancy covers Chapter 4 Recording of transactions 2 comprehensively. It is designed for quick and convenient learning. You can easily download the Vedantu app or visit our website for NCERT Accountancy book Class 11 Solutions PDF.
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Access NCERT Solutions for Class 11 Accountancy Chapter 4 – Recording of transaction II
1. Briefly state how the cash book is both journal and a ledger.
Ans: The preparation of the journal entries when the journal entry is posted directly from the source documents to the cashbook. The cash book also has the bank column to balance out the cash column. This hence serves as the basis of the ledger account as well when the separate cash and bank accounts are no need to be maintained; hence the cash book is both a journal and a ledger in this manner.
2. What is the purpose of contra entry?
Ans: A contra entry is an entry during which the deposit made or cash is withdrawn happens in a simultaneous manner. made when the debit and credit of a transaction is bank and cash. i.e. When a deposit is formed or cash is withdrawn the entry is claimed to be contra entry. During a double column cash book, Contra entry is found on each side of the account with the letter “C” in the LF column. This suggests that the opposite account which is affected by this transaction is on the opposite side of the account. Also, Contra entry doesn't affect the record in any way because take advantage hand reduces and Cash at the bank increases or vice versa.
3. What are special purpose books?
Ans: The special purpose books are considered to be the sub-divisions of a Journal book. Any business undergoes a large number of transactions throughout the year. These transactions are repetitive in nature and that they occur.
frequently. The journal entry for every one of those transactions has got to be passed as and when these transactions occur. Hence the special purpose books like Purchase Books and Sales Books are prepared and maintained so as to record these transactions directly without making journal entries. These thus save the time and efforts of an entity to undergo entries for such repetitive transactions.
4. What is a petty cash book? How is it prepared?
Ans: Every business has got to undergo petty expenses such postage, telephone, stationery etc. rather than making the journal entries for these petty transactions as they occur whenever, the petty cashbook is maintained by the entities which directly record such transactions. There are two sorts of petty cash books:
i. Original System: during this system, a specific amount of sum is given to the cashier so as to undergo such petty transactions. The cashier makes petty expenses out of this amount and records them as they're spent. After when the whole amount is spent, the report is handed over to the cashier for such expenses.
ii. Imprest System: during this system, a specific fixed amount of sum is provided to the petty cashier within the beginning of any accounting period. After the passage of a certain interval of your time, the petty cash book is checked and therefore the petty cashier is given the quantity spent to offer the petty cashier the fixed amount of sum during a necessitated manner. This fixed amount of sum is named Imprest cash.
5. Explain the meaning of posting journal entries?
Ans: The transfer of the recorded transactions from the journal entries to the ledger is understood because of the posting of journal entries. The journal entries are made so as to record the massive number of transactions of the business at regular intervals. The posting process of the journal entries to the ledger accounts is mentioned because of the classifying phase of the accounting.
6. Define the purpose of maintaining a subsidiary journal.
Ans: The purpose of the subsidiary journal is to attenuate the burden and complexity of recording the voluminous transactions of routine nature once they are posted directly within the subsidiary books rather than making journal entries for an equivalent whenever within the books of accounts. Thus the transaction of the business like purchase and sales which occurs within the day to day are posted within the subsidiary books directly. This further allows the business to possess a fast look at such transactions and verify them as per the necessity of the business. The aim of maintaining the subsidiary books are as follows:
It gives the chance for the business to divide work between the workers of the organization who gain specialization in their own field.
This allows the business to save lots of their time and therefore the efforts when the entries are directly posted within the books of the accounts rather than making separate entries for an equivalent whenever as journal entries.
7. Write the difference between return inwards and return outwards.
Ans: The difference between return inwards and return outwards are as follows:
Basis of Difference | Return Inwards | Return Outwards |
Definition | It is the return of the goods which come within the entity. For e.g., Goods sold to the customers returned to it. | It is the return of the goods during which the returned goods leave the entity. For e.g., Goods purchased are returned to the suppliers. |
Document | This leads to the preparation of the Credit note by the seller. | This leads to the preparation of the Debit note by the buyer. |
Effect | It reduces debtors in the balance sheet and the Sales in the trading account. | It reduces the creditors in the balance sheet and the Purchases in the trading account. |
Balance | The Return Inwards/Sales return shows a debit balance. | The Return Outward/ Purchase return shows a credit balance. |
8. What do you understand by ledger folio?
Ans: The Ledger folio (L.F.) number is mentioned because the reference number denotes the pagination of the corresponding ledger account. This hence allows a private to see the first entry posted within the Ledger Account, allowing the due tracking and therefore the examination of the transaction. This reduces the complexity to travel through the massive number of the transactions within the day to day which is posted on the day to day basis so as to seem after the special transaction.
9. What is the difference between a trade discount and a cash discount?
Ans: The difference between trade discount and cash discount are as follows:
Basis of Difference | Trade Discount | Cash Discount |
Timing | The trade discount is made at the time of making the trade i.e. at the time of sale or purchase. | The cash discount is made at the time of making the payment. |
Purpose | The deduction is made so as to spice up sales. | The cash discount is made to encourage the early payment of the dues. |
Deduction | This marks the deduction from the price of products. | This doesn't lead to the deduction from the price listed. |
Recording in books | This type of discount is not made a neighbourhood of the books and is directly shown within the bill/invoice. | This type of discount is shown distinctively through the separate entry within the books. The entry thus made debits the discount allowed and credits the discount received. |
10. Write the process of preparing a ledger from a journal.
Ans: The process of preparing a ledger from a journal are:
Recording the transactions because of the journal entries and identifying the debit and credit transactions from them.
Preparing the ledger account in a systematic manner by keeping in mind the format of the ledger. The columns of the ledger thus must include the subsequent columns: Date, Particulars, JF and amount on each side of a sheet.
The left side of the account is that the accounting and hence must comprise of the date and therefore the account to be debited within the particulars column. The Journal Folio number and therefore the Amount must be duly specified following this.
The proper hand side of the account must encompass the credit entries and must contain the date and therefore the particular to say the account to be credited, alongside the quantity.
11. What do you understand by the Imprest amount in the petty cash book?
Ans: Imprest amount is that the fixed amount of sum which is given to the petty cashier to form petty expenses for the required period of your time. The petty cash book is checked at regular intervals and therefore the petty cashier is given the reimbursement to take care of the fixed amount or Imprest amount. This amount is provided within the beginning of the accounting period which is to be searched for the whole accounting year.
12. Explain the need for drawing up the special purpose books.
Ans: Following are the necessity for maintaining the special purpose books:
The special-purpose books helps the business to determine the accountability within the organization because the individual delegated with the task of maintaining their respective special-purpose book has got to maintain his/her own book and hence is responsible for the factual correctness of the business.
The upkeep of the special purpose books allows the organization to realize the advantage of quickly recording the transactions associated with the special purpose book within the books because the entries in them are made in a much easier manner.
It helps in achieving the efficiency of the accountants once they gain specialization within the domain of their respective special-purpose book.
It helps the business to realize simplification when the repetitive transactions like purchase and therefore the sales are directly posted within the special purpose books rather than making journal entries of them.
The upkeep of the special purpose books further gives the advantage for the business to simply track the transactions once they don't need to examine the journal entries for the transactions of which the books are maintained.
13. What is a cash book? Explain the types of cash books.
Ans: Cash books are often mentioned as a special purpose book for maintaining the cash and therefore the bank transactions of the business where within the accounting it records the transactions. Within the accounting of the cash book, the transaction handling the deposit of the quantity within the bank and therefore the cash receipts are recorded and therefore the accounting records the payment made up of bank and cash by the business. It’s considered to be the book of original entries which directly posts the entries directly from the source documents. It's further also considered to be Ledger as one can directly with the cash and therefore the bank balances of the business at any given point of your time. The cash book is usually maintained on a monthly basis. There are four sorts of cash books
i. Simple Cash Book: this sort of money book records only the cash transactions incurred by the business where within the accounting receipts and within the accounting, the payments are recorded.
ii. Double Column Cash Book: this sort of money book records the cash and therefore the bank transaction made by the business. It thus has two columns on all sides of the cash book. These sorts of cash books record the contra entries during which both the cash and therefore the bank side is debited and credited.
iii. Triple Column Cash Book: this sort of money book records the discount allowed and received by the business and thus comprises the extra column for an equivalent.
iv. Fund Book: The fund Book is maintained for the aim of recording the petty expenses made by the business-like postage charges, telephone and stationery bills etc.
14. What is contra entry? How can you deal with this entry while preparing the double column cash book?
Ans: The Contra entry is made when the deposit or withdrawal made in the bank through the cash happens in a simultaneous manner. Thus the effect of the contra entry happens on both sides of the cash book – debit and credit. It is denoted by the letter “C” in the Ledger Folio column. It is important to note that the contra entries do not affect the balance of the balance sheet because as with the loss in Cash in Hand there is a rise in the balance of the bank and vice versa.
The following is an example when cash is withdrawn from Bank:
Cash A/c Dr XXX
To Bank A/c XXX
(Being Cash withdrawn)
This entry is illustrated in the cash book below:
Dr Cash Book Cr
Date | Particulars | L.F | Cash | Bank | Date | Particulars | L.F | Cash | Bank |
01.01.17 | Bank | C | XXX | 01.01. 17 | Cash | C | XXX | ||
15. What is a petty cash book? Write the advantages of the petty cash book?
Ans: The fund book is the cash book that records the petty expenses made by the business-like postage charges, stationery, electricity bill etc. The one that handles and maintains the fund book is named petty cashier.
The Fund Book is Maintained in Two Ways.
i. Original System: Under this technique, a specific amount of sum is given to the cashier who spends it on the petty expenses and records an equivalent within the petty cash book. The petty cashier reports the small print of an equivalent when the quantity held by him/her is spent.
ii. Imprest System: Under this technique, the petty cashier is given the actual fixed amount of sum at the start of every accounting period of which he/she is required to form expenses. After every certain duration of your time, the fund book is checked and therefore the amount spent on the petty expenses is given such that the fixed balance of the determined cash for the petty expenses is held by the petty cashier. This fixed amount of sum is mentioned as Imprest cash.
The Advantages of Maintaining a Fund Book are as Follows:
There are petty expenses that the business incurs and thus the upkeep of the fund book makes it simpler and easier for recording the transactions instead of making journal entries for an equivalent.
The petty expenses are often controlled by the business by handing the determined amount of the petty expense amount to the person who has the responsibility to spend it judiciously and further report the expense to the cashier.
The fund book helps the business to realize the division of the work when the responsibility of maintaining the accounts is with the petty cashier only.
This thus allows the chief cashier to make sure the effectiveness of the method of recording of the transactions of the petty nature.
16. Describe the advantages of sub-dividing the Journal.
Ans: The advantages of subdividing the journal are as follows:
The subdivision of the journal makes it liable for the business to delegate the responsibility upon individuals to handle the responsibility of their respective books of accounts. This hence makes them accountable to make sure the correctness and therefore the accuracy of their respective book. It thus acts as a check on the fraudulent participation of the workers of the organization.
The subdivision of the journal creates the division of labour when the roles and therefore the responsibilities are delegated upon the individuals within the organization to maintain their respective book. This thus reduces the complexity of the task of maintaining accounts.
The creation of the separate books for the separate sorts of transactions save time for the business when such transactions are often directly recorded within the books rather than making the journal entries for an equivalent.
The subdivision of the journal entries allows the corporate to realize the efficient results when everyone conferred the responsibility of maintaining their books make them efficient in their task and thus they gain expertise.
The recording of the separate transactions within the separate books makes it easier for the business to trace the transactions of the separate nature directly by browsing their books. For instance, so as to work out the credit purchase made by the organization on any date can be directly looked through by browsing the acquisition books rather than looking at the journal entries containing voluminous transactions.
17. What do you understand by the balancing of accounts?
Ans: The balancing of the account means making the quantities accounting adequate to the amount within the accounting. this is often done on regular basis from time to time by the business. The following is that the steps in balancing of account:
Step 1: Total the debit and therefore the accounting of the account and determine which amount is higher by tallying both of them.
Step2: the entire of the sides comprising the upper amount either on the credit or on the accounting of the account has got to be written because of the grand total amount.
Step 3: Determine the difference of the quantity of the lower side with the grand total to work out the balancing figure. The balancing figure has got to be written as Balance c/d.
Step 4: the quantity of the balance c/d are going to be posted within the side whichever sides feature a lower total
Step 5: This amount of Balance c/d has got to be brought down within the subsequent accounting period and treated as Balance b/d
18. Enter the following transactions in a simple cash book for December 2014:
01 Cash in hand 12000
05 Cash received from Bhanu 4000
07 Rent paid 2000
10 Purchased goods from Murari for cash 6000
15 Sold goods for cash 9000
18 Purchase stationery 300
22 Cash paid to Rahul on account 2000
28 Paid salary 1000
30 Paid rent 500
Ans:
Cashbook
Dr Cr
Date | Particulars | LF | Amount(Rs) | Date | Particulars | LF | Amount(Rs) |
01.12.16 05.12.16 15.12.16 | To Balance b/d
| 12000 4000 9000 | 07.12.16 10.12.16 18.12.16 22.12.16 28.12.16 30.12.16 31.12.16 | Rent A/c Purchase A/c Stationery Expenses A/c Rahul A/c Salary A/c Rent A/c Balance A/c | 2000 6000 300 2000 1000 500 13200 | ||
25000 | 25000 | ||||||
19. Record the following transaction in a simple cash book for
November 2016:
Rs
01 Cash in hand 12500
04 Cash paid to Hari 600
07 Purchased goods 800
12 Cash received from Amit 1960
16 Sold goods for cash 800
20 Paid to Manish 590
25 Paid cartage 100
31 Paid salary 1000
Ans:
Cashbook
Dr Cr
Date | Particulas | L F | Amount (Rs) | Date | Particulars | L F | Amount (Rs) |
01.11.16 12.11.16 16.11.16 | To Balance b/d To Amit A/c To Sales A/c | 12500 1960 800 | 04.11.16 07.11.16 20.11.16 25.11.16 30.11.16 30.11.16 | Hari A/c Purchases A/c Manish A/c Cartage A/c Salary A/c Balance c/d | 600 800 590 100 1000 12170 | ||
15260 | 15260 | ||||||
20. Enter the following transaction in the Simple cash book for December 2017:
Rs.
01 Cash in hand 7,750
06 Paid to Sonu 45
08 Purchased goods 600
15 Received cash from Parkash 960
20 Cash sales 500
25 Paid to S.Kumar 1,200
30 Paid rent 600
Ans:
Cashbook
Dr Cr
Date | Particulars | L F | Amount (Rs) | Date | Particulars | L F | Amount (Rs) |
01.12.17 15.12.17 20.12.17 | To Balance b/d To Prakash A/c To Sales A/c | 7750 960 500 | 06.12.17 08.12.17 25.12.17 30.12.17 30.12.17 | By Sonu A/c By Purchases A/c By S.Kumar A/c By Rent A/c By Balance c/d | 45 600 1200 600 6765 | ||
9210 | 9210 | ||||||
21. Record the following transactions in a bank column cash book for December
2016:
Rs.
01 Started business with cash 80,000
04 Deposited in bank 50,000
10 Received cash from Rahul 1,000
15 Bought goods for cash 8,000
22 Bought goods by cheque 10,000
25 Paid to Shyam by cash 20,000
30 Drew from Bank for office use 2,000
31 Rent paid by cheque 1,000
Ans:
Cashbook
Dr Cr
Date | Particulars | L F | Cash (Rs) | Bank (Rs) | Date | Particulars | L F | Cash (Rs) | Bank (Rs) |
01.12.16 04.12.16 10.12.16
| To Capital A/c To Cash To Rahul A/c To Bank | C | 80000
1000 | 50000 | 04.12.16 15.12.16
30.12.16 31.12.16 31.12.16 | By Bank By Purchases A/c By Purchases A/c By Shyam A/c By Cash By Rent A/c By Balance c/d (B/f) | 50000 8000 5000 |
1000 37000 | |
83000 | 50000 | 83000 | 50000 | ||||||
22. Prepare a double column cash book with the help of the following information
for December 2016:
Rs.
01 Started business with cash 1,20,000
03 Cash paid into bank 50,000
05 Purchased goods from Sushmita 20,000
06 Sold goods to Dinker and received a cheque 20,000
10 Paid to Sushmita cash 20,000
14 Cheque received on December 06. 2016 deposited into
bank
18 Sold goods to Rani 12,000
20 Cartage paid in cash 500
22 Received cash from Rani 12,000
27 Commission received 5,000
30 Drew cash for personal use 2,000
Ans:
Cashbook
Dr Cr
Date | Particu lars | L F | Cas h (Rs) | Ban k (Rs) | Date | Particu lars | L F | Cas h (Rs) | Ban k (Rs) |
01.12.16
06.12.16 14.12.16 22.12.16 27.12.16 | To Capital A/c To Cash To Dinker A/c To Cash To Rani A/c To Commission A/c | 120000 20000 12000 5000 | 50000 20000 | 3.12.16 10.12.16 14.12.16 20.12.16 30.12.16 31.12.16 | By Bank By Sushmita A/c By Bank By Cartage A/c By Drawings A/c By Balance c/d | 50000 20000 20000 500 2000 64500 | 70000 | ||
157000 | 70000 | 157000 | 70000 | ||||||
23. Enter the following transactions in the double column cash book of M/s Ambica
Traders for July 2017:
Rs.
01 Commenced business with cash 50,000
03 Opened bank account with ICICI 30,000
05 Purchased goods for cash 10,000
10 Purchased office machine for cash 5,000
15 Sales goods on credit from Rohan and received cheque
7,000
18 Cash sales 8,000
20 Rohan’s cheque deposited into the bank
22 Paid cartage by cheque 500
25 Cash withdrawn for personal use 2,000
30 Paid rent by cheque 1,000
Ans:
Cashbook
Dr Cr
Date | Particulars | L F | Cash (Rs) | Bank (Rs) | Date | Particulars | L F | Cash (Rs) | Bank (Rs) |
01.07.17 03.07.17 15.07.17 18.07.17 20.07.17 | Capital A/c Cash Rohan A/c Sales A/c Cash | C | 50000 7000 8000 | 30000 7000 | 03.07.17 05.07.17 10.07.17 20.07.17 22.07.17 25.07.17 30.07.17 31.07.17 | Bank Purchases A/c Machinery A/c Bank Cartage A/c Drawings A/c Rent Balance c/d | 30000 10000 5000 7000 2000 11000 | 500 1000 35500 | |
65000 | 37000 | 65000 | 37000 | ||||||
24. Prepare double column cash book from the following
information for
July 2017:
Rs.
01 Cash In hand 7,500
Bank overdraft 3,500
03 Paid wages 200
05 Cash sales 7,000
10 Cash deposited into bank 4,000
15 Goods purchased and paid by cheque 2,000
20 Paid rent 500
25 Drew from the bank for personal use 400
30 Salary paid 1,000
Cashbook
Dr Cr
Date | Particulars | L F | Cash (Rs) | Bank (Rs) | Date | Particulars | L F | Cash (Rs) | Bank (Rs) |
01.0 7.17 05.0 7.17 10.0 7.17 31.0 7.17 | Balance b/d Sales A/c Cash Balance c/d | 7500 7000 | 4000 1900 | 01.07.17 03.0 7.17 10.0 7.17 15.0 7.17 20.0 7.17 25.0 7.17 31.0 7.17 | Balance b/d Wages A/c Bank Purchase A/c Rent A/c Drawings A/c Salary A/c Balance c/d | 200 4000 500 1000 8800 | 3500 2000 400 | ||
14500 | 5900 | 14500 | 5900 | ||||||
25. Enter the following transaction in a double column cash
book of M/s.Mohit
Traders for January 2017:
Rs.
Cash in hand 3,500
Bank overdraft 2,300
03 Goods purchased for cash 1,200
05 Paid wages 200
10 Cash sales 8,000
15 Deposited Into bank 6,000
22 Sold goods for a cheque which was deposited into 2,000
bank same day
25 Paid rent by cheque 1,200
28 Drew from the bank for personal use 1,000
31 Bought goods by cheque 1,000
Books of M/s.Mohit Traders
Cashbook
Dr Cr
Date | Particulars | L F | Cash (Rs) | Bank (Rs) | Date | Particulars | L F | Cash (Rs) | Bank (Rs) |
01.01.17 10.01.17 15.01.17 22.01.17 | Balance b/d Sales A/c Cash Sales A/c | 3500 800 | 6000 2000 | 01.01.17 03.01.17 05.01.17 15.01.17 25.01.17 28.01.17 31.01.17 31.01.17 | Balance b/d Purchases A/c Wages A/c Bank Rent A/c Drawings A/c Purchases A/c Balance c/d | 1200 200 6000 4100 | 2300 1200 1000 1000 2500 | ||
11500 | 8000 | 11500 | 8000 | ||||||
26. Prepare double column cash book from the following
transactions for the year August 2017:
Rs.
01 Cash in hand 17,500
Cash at bank 5,000
03 Purchased goods for cash 3,000
05 Received cheque from Jasmeet 10,000
08 Sold goods for cash 7,000
10 Jasmeet’s cheque deposited into the bank
12 Purchased goods and paid by cheque 20,000
15 Paid establishment expenses through bank 1,000
18 Cash sales 7,000
20 Deposited into bank 10,000
24 Paid trade expenses 500
27 Received commission by cheque 6,000
29 Paid Rent 2,000
30 Withdrew cash for personal use 1,200
31 Salary paid 6,000
Ans:
Cashbook
Dr Cr
Date | Particulars | L F | Cash (Rs) | Bank (Rs) | Date | Particulars | L F | Cash (Rs) | Bank (Rs) |
01.08.17 05.08.17 08.08.17 10.08.17 18.08.17 20.08.17 27.08.17 | Balance b/d Jasmeet A/c Sales A/c Cash Sales A/c Cash Commission A/c | 17500 10000 7000 7000 | 5000 10000 10000 6000 | 03.08.17 10.08.17 12.08.17 15.08.17 20.08.17 24.08.17 29.08.17 30.08.17 31.08.17 31.08.17 | Purchases A/c Bank Purchases A/c Establishment Expenses Bank Trade expenses A/c Rent A/c Drawing s A/c Salary A/c Balance c/d | 3000 10000 10000 500 2000 6000 10000 | 2000 1000 1200 8800 | ||
41500 | 31000 | 41500 | 31000 | ||||||
27. M/s Ruchi traders started their cash book with the
following balances on
July 2017: cash in hand Rs. 1,354 and balance in the bank
current account
Rs.7,560. He had the following transaction in the month of
July 2017: Rs.
03 Cash sales 2,300
05 Purchased goods, paid by cheque 6,000
08 Cash sales 10,000
12 Paid trade expenses 700
15 Sales goods, received the cheque (deposited same day)
20,000
18 Purchased motor car paid by cheque 15,000
20 Cheque received from Manisha (deposited same day)
10,000
22 Cash Sales 7,000
25 Manisha’s cheque returned dishonoured
28 Paid Rent 2,000
29 Paid telephone expenses by cheque 500
31 Cash withdrawn for personal use 2,000
Prepare bank column cash book
Ans:
Books of M/s.Ruchi Traders
Cashbook
Dr Cr
Date | Particulars | L F | Cash (Rs) | Ban k (Rs) | Date | Particulars | L F | Cash (Rs) | Ban k (Rs) |
01.07.17 03.07.17 08.07.17 15.07.17 20.07.17 22.0 7.17 | Balance b/d Sales A/c Sales A/c Sales A/c Manis ha A/c Sales A/c | 1354 2300 10000 | 7560 20000 10000 7000 | 05.0 7.17 12.0 7.17 18.0 7.17 25.0 7.17 28.0 7.17 29.0 7.17 31.0 7.17 31.0 7.17 | Purchases A/c Trade expense Motor Car A/c Manisha A/c Rent A/c Telephone Expenses Drawings A/c Balance c/d | 700 2000 10954 | 6000 15000 10000 500 2000 11060 | ||
13654 | 44560 | 13654 | 44560 | ||||||
28. Prepare petty cash book from the following transactions.
The Imprest amount
is Rs.2.000.
2017
Rs.
January
01 Paid cartage 50
02 STD charges 40
02 Bus fare 20
03 Postage 30
04 Refreshment for employees 80
06 Courier charges 30
08 Refreshment of customer 50
10 Cartage 35
15 Taxi fare to manager 70
18 Statloneiy 65
20 Bus fares 10
22 Fax charges 30
25 Telegrams charges 35
127 Postage stamps 200
29 Repair on furniture 105
30 Laundry expenses 115
31 Miscellaneous expenses 100
Ans:
Petty cash book
Amount Received | Date | Particulars | Voucher No | Amount Paid | Analysis of payments | Remars | ||||
| Postage | Tele phon e & Tele gram | Conveyance | Stati oner y | Misc | |||||
2000 | 01.01.17 01.01.17 02.01.17 02.01.17 03.01.17 04.01.17 06.01.17 08.01.17 10.01.17 15.01.17 18.01.17 20.01.17 22.01.17 25.01.17 27.01.17 29.01.17 30.01.17 31.01.17 31.01.17 01.02.17 01.02.17 | Cash received Cartage STD Charges Bus Fare Postage Refreshment courier Charges Refreshments Cartage Taxi Fare Stationery Bus Fare Fax charges Telegram charges Postage Stamps Repairs Laundry Expenses Misc. Expenses Balance c/d Balance b/d Cash received | 50 40 20 30 80 30 50 35 70 65 10 30 35 200 105 | 30 30 200 | 40 30 35 | 50 20 50 35 70 65 10 | 80 105 | |||
115 100 | 115 100 | |||||||||
1065 935 | 260 | 105 | 185 | 65 | 450 | |||||
2000 | 2000 | |||||||||
935 1065 | ||||||||||
29. Record the following transactions during the week ending
Dec.30, 2014, with a weekly imprest Rs.500
2017 Rs.
January
24 Stationery 100
25 Bus fare 12
25 Cartage 40
26 Taxi fare 80
27 Wages to casual labour 90
29 Postage 80
Ans:
Petty cash book
Amount received | Date | Particulars | Voucher no | Amount paid | Analysis of payments | Remarks | |||
500 | 24.12.17 24.12.17 25.12.17 26.12.17 26.12.17 27.12.17 29.12.17 30.12.17 01.01.18 01.01.18 | Balance b/d Stationery Expenses Bus Fare Cartage Taxi Fare Wages to casual labour Postage Balance c/d Balance b/d Cash received | 100 12 40 80 90 80 | Stationery | Conveyance | Postage | Misc | ||
100 | 12 40 80 | 80 | 90 | ||||||
402 98 | 100 | 132 | 80 | 90 | |||||
500 | 500 | ||||||||
98
402 | |||||||||
30. Enter the following transaction in a double column cash
book of M/s Mohit Traders for January 2017:
Rs
01 Cash in hand 3,500
Bank overdraft 2,300
03 Goods purchased for cash 1,200
05 Paid wages 200
10 Cash sales 8,000
15 Deposited into bank 6,000
22 Sold goods for a cheque which was deposited into
bank same day
2,000
25 Paid rent by cheque 1,200
28 Drew from the bank for personal use 1,000
31 Bought goods by cheque 1,000
Ans:
Books of M/s Gupta Traders
Purchases Book
Date | Invoice No. | Name of the supplier (Account to be credited) | L.F | Details | Amount(Rs) |
01.07.17 15.07.17 25.07.17 | 20041 1132 1111 | Rahul Traders 40 Registers @ Rs.60 each 80 Gel Pens @ Rs.15 each 50 notebooks @Rs.20 each Less: Trade Discount @ 10% Global Stationers 40 Ink Pads @ RS.8 each 50 Files @ Rs.10 each 20 Colour book @ Rs.20each Less: Trade Discount @ 5% Mumbai Traders 10 paper rim @ Rs.100 per rim 400 drawing sheets @ Rs.3 each 20 Packets water colours @ Rs.40 per pocket Purchases Account | 2400 1200 1000 | 4140 1159 3000 | |
4600 460 320 500 400 | |||||
1220
61 1000 1200 800 | |||||
3000 | |||||
8299 | |||||
Note: Purchase book contains details about only credit purchases. Cash purchases will be recorded in cash book. Also, only trading goods will be booked. Purchase of Assets will not a form part of the purchase book. Here Furniture (asset) purchase is hence not recorded in Purchases book.
31. Enter the following transactions in sales (journal) book of M/s. Bansal electronics: 2014 September 01 Sold to Amit Traders as per bill no. 4321 20 Packet Radio @ 70 per radio 2 T.V. set, B&W. (6”) @ 800 per T.V. 10 Sold to Arun Electronics as per bill no. 4351 5 T.V. sets (20”) B&W. @ 3000 per T.V. 2 T.V. sets (21”) Colour @Rs. 4800 per T.V.
22 Sold to Handa Electronics as per bill no. 4399 10 tape recorders @ Rs. 600 each 5 Walkman @ Rs. 300 each 28 Sold to Harish Traders as per bill no. 4430 10 mixer juicer grinder @Rs. 800 each.
Ans:
Books of M/s. Bansal electronics
Sales Book
Date | Invoice No | Name of the Customer (Account to be debited) (Rs) | L F | Details | Amount No |
01.09.14 10.09.14 22.09.1 4 28.09.1 4 | 4321 4351 4399 4430 | Amit Traders 20 pocket radio @ Rs.70 per radio 2 T.V set-B&W-6" @ Rs.800 per TV Arun Electronics 5 T.V sets-B&W-20" @ Rs.3000 per TV 2 T.V sets-Colour-21" @ Rs.4800 per TV Handa Electronics 10tape recorders @ RS.600 each 5 walkman @ Rs.300 each Harish Trader 10 mixer juicer grinder @ Rs.800 each Sales Account | 1400 1600 15000 9600 6000 1500 8000 | 3000 24600 7500 8000 | |
43100 | |||||
32. Prepare a purchases return (journal) book from the
following transaction for April 2017.
2017
April Rs.
05 Returned goods to M/s Kartik Traders 1200
10 Goods returned to Sahil Pvt. Ltd. 2500
17 Goods returned to M/s Kohinoor Traders for
list price Rs. 2000 less 10% trade discount.
28 Return outwards to M/s Handa Traders 550
(Ans. Total of purchases returns book Rs. 6150)
Ans:
Purchase Returns Book
Date | Debit Note No. | Name of the Supplier (Account to be debited) | L F | Details | Amount (Rs) |
05.04.17 10.04.1 7 17.04.1 7 28.04.1 | M/S Karthik traders Sahil Pvt Ltd Kohinoor Traders List Price Less: Trade Discount @ 10% Handa Traders Purchases Returns Account | 2000 200 | 1200 2500 1800 550 | ||
6050 | |||||
33. Prepare Return Inward Journal (Book) from the following
transactions of M/s Bansal Electronics for July 2017:
2017 Rs.
July
04 M/s Gupta Traders returned the goods 1500
10 Goods returned from M/s Harish Traders 800
18 M/s Rahul Traders returned the goods, not as per
specifications 1200
28 Goods returned from Sushil Traders 1000
Ans:
Books of M/s. Bansal electronics
Sales Return Book
Date | Credit Note No. | Name of the Customer(Account to be credited) (Rs) | L F | Details | Amount (Rs) |
04.07.17 10.07.17 18.07.17 28.07.17 | M/S.Gupta Traders M/s.Harish Traders Rahul Traders Sushil Traders Sales return account 4500 | 1500 800 1200 1000 | |||
4500 | |||||
34. Prepare proper subsidiary books and post them to the
ledger form the following transactions for the month of
February 2017:
2017 Rs.
February
01 Goods sold to Sachin 5,000
04 Purchase from Kushal Traders 2,480
06 Sold goods to Manish Traders 2,100
07 Sachin returned goods 600
08 Returns to Kushal Traders 280
10 Sold to Mukesh 3,300
14 Purchased from Kunal Traders 5,200
15 Furniture purchased from Tarun 3,200
17 Bought of Naresh 4,060
20 Return to Kunal Traders 200
22 Return Inwards from Mukesh 250
24 Purchased goods from Kirit & Co. 5,700
for a list price of
less 10% trade discount
25 Sold to Shri Chand goods 6600
less 5% trade discount
26 Sold to Rarnesh Brothers 4,000
28 Return outwards to Kirit and Co. 1,000
less 10% trade discount
28 Ramesh Brothers returned goods Rs. 500
Ans:
Journal
Purchases Book
Date | Name of Supplier (Accounts to be credited) | Invoice No. | L.F | Amount (Rs) |
2017 Feb.04 Feb.14 Feb.17 Feb.24 | Kushal Traders Kunal Traders Naresh Kirit and Co. Less: Trade Discount 10% | 2,480 5,200 4,060 5,130 | ||
Purchase account | 16,870 |
Sales Book
Date | Name of Supplier (Accounts to be debited) | Invoice No. | L.F | Amount (Rs) |
2017 Feb. 01 Feb.06 Feb.10 Feb.25 Feb.26 | Sachin Manish Traders Mukesh Shri Chand Less: 5% Trade Discount Ramesh Brothers | 5,000 2,100 3,300 6,270 4,000 | ||
Sales account | 20,670 |
Sales Return Book
Date | Name of Customer (Accounts to be credited) | Credit Note | L.F | Amount(Rs) |
2017 Feb.07 Feb.2 Feb.28 |
Sachin Mukesh Ramesh Brothers | 600 250 500 | ||
Sales Return Account | 1,350 |
Purchases Return Book
Date | Name of Customer (Accounts to be debited) | Debit Note | L.F | Amount(Rs) |
2017 Feb.08 Feb.20 Feb.28 | Kushal Traders Kunal Traders Kirit and Co. Less: 10% Trade Discount | 280 200 900 | ||
Purchases Return A/c | 1,380 |
Journal Proper
Date | Particulars | L.F | Debit Amount (Rs) | Credit Amount (Rs) |
2017 Feb.15 | Furniture A/c Dr. To Tarun (Furniture purchased from Tarun) | 3,200
| 3,200 |
Ledger
Purchases Account
Dr Cr
Date | Particular | J.F | Amount(Rs) | Date | Particular | J.F | Amount (Rs) |
2017 Feb.28 | Sundries as per Purchases Book | 16,870 | 2017 Feb.28 | Balance c/d | 16,870 | ||
16,80 | 16,870 | ||||||
Sales Account
Dr Cr
Date | Particulars | J.F. | Amount (Rs) | Date | Particulars | J.F. | Amount (Rs) |
2017 Feb.28 |
Balance c/d | 20,670 | 2017 Feb.28 | Sundries as per Sales Book | 20,670 | ||
20,670 | 20,670 | ||||||
Sales Return Account
Dr Cr
Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount |
2017 Feb.28 | Sundries as per Sales Return Book | 1,350 | 2017 Feb.28 | Balance c/d | 1,350 | ||
1,350 | 1,350 | ||||||
Purchases Return Account
Dr Cr
Date | Particulars | J.F. | Amount (Rs) | Date | Particulars | J.F . | Amount |
2017 Feb.28 |
Balance c/d | 1,380 | 2017 Feb.28 | Sundries as per Purchases Return Book | 1,380 | ||
1,380 | 1,380 | ||||||
Sachin’s Account
Dr Cr
Date | Particulars | J.F. | Amount (Rs) | Date | Particulars | J.F. | Amount (Rs) |
2017 Feb.01 | Sales | 5,000 | 2017 Feb.07 Feb.28 | Sales Return Balance c/d | 600 4,400 | ||
5,000 | 5,000 | ||||||
Kushal Traders’ Account
Dr Cr
Date | Particulars | J.F. | Amount (Rs) | Date | Particulars | J.F. | Amount (Rs) |
2017 Feb.08 Feb.28 | Purchases Return Balance c/d | 280 2,200 | 2017 Feb.04 | Purchases | 2,480 | ||
2,480 | 2,480 | ||||||
Manish Traders’ Account
Dr Cr
Date | Particulars | J.F. | Amount (Rs) | Date | Particulars | J.F. | Amount (Rs) |
2017 Feb.06 | Sales | 2,100 | 2017 Feb.28 | Balance c/d
| 2,100 | ||
2,100 | 2,100 | ||||||
Mukesh’s Account
Dr Cr
Date | Particulars | J.F. | Amount (Rs) | Date | Particulars | J.F. | Amount (Rs) |
2017 Feb.10 | Sales | 3,300 | 2017 Feb.22 Feb.28 | Sales Return Balance c/d |
250 3,050 | ||
3,300 | 3,300 | ||||||
Kunal Traders’ Account
Dr Cr
Date | Particulars | J.F. | Amount (Rs) | Date | Particulars | J.F. | Amount (Rs) |
2017 Feb.20 Feb.28 | Purchase Return Balance c/d
| 5,200 5,000 | 2017 Feb.14 | Purchases | 5,200 | ||
5,200 | 5,200 | ||||||
Furniture Account
Dr Cr
Date | Particulars | J.F. | Amount (Rs) | Date | Particulars | J.F. | Amount (Rs) |
2017 Feb.15 |
Tarun | 3,200 | 2017 Feb.28 |
Balance c/d | 3,200 | ||
3,200 | 3,200 | ||||||
Tarun’s Account
Dr Cr
Date | Particulars | J.F. | Amount (Rs) | Date | Particulars | J.F. | Amount (Rs) |
2017 Feb.28 | Balance c/d | 3,200 | 2017 Feb.15 | Furniture | 3,200 | ||
3,200 | 3,200 | ||||||
Naresh’s Account
Dr Cr
Date | Particulars | J.F. | Amount (Rs) | Date | Particulars | J.F. | Amount (Rs) |
2017 Feb.28 | Purchases | 4,060 | 2017 Feb.17 | Balance c/d | 4,060 | ||
4,060 | 4,060 | ||||||
Kirit & Co. Account
Dr Cr
Date | Particulars | J.F. | Amount (Rs) | Date | Particulars | J.F. | Amount (Rs) |
2017 Feb.28 Feb.28 | Purchases Return Balance c/d | 900 4230 | 2017 Feb.24 | Purchases | 5,130 | ||
5,130 | 5,130 | ||||||
Shri Chand & Co. Account
Dr Cr
Date | Particulars | J.F. | Amount (Rs) | Date | Particulars | J.F. | Amount (Rs) |
2017 Feb.25 | Sales | 6,270 | 2017 Feb.28 | Balance c/d | 6,270 | ||
6,270 | 6,270 | ||||||
Ramesh’s Account
Dr Cr
Date | Particulars | J.F. | Amount (Rs) | Date | Particulars | J.F. | Amount (Rs) |
2017 Feb.26 | Sales | 4,000 | 2017 Feb.28 Feb.28 | Sales Return Balance c/d | 500 3500 | ||
4,000 | 4,000 | ||||||
34. The following balances of ledger of M/s Marble Traders
on April 01. 2017the
2017 Rs.
April
Cash In hand 6,000
Cash at bank 12,000
Bills receivable 7,000
Ramesh (Cr.) 3,000
Stock (Goods) 5,400
Bills payable 2,000
Rahul (Dr.) 9,700
Himanshu (Dr.) 10,000
Transactions during the month were:
April Rs.
01 Goods sold to Manish 3,000
02 Purchased goods from Ramesh 8,000
03 Received cash from Rahul in full settlement 9,200
05 Cash received from Himanshu on account 4,000
06 paid to Remesh by cheque 6,000
08 Rent paid by cheque 1,200
10 Cash received from Manish 3,000
12 Cash sales 6,000
14 Goods returned to Ramesh 1,000
15 Cash paid to Rarnesh in full settlement 3,700
Discount received 300
18 Goods sold to Kushal 10,000
20 Paid trade expenses 200
21 Drew for personal use 1,000
22 Goods return from Kushal 1,200
24 Cash received from Kushal 6,000
26 Paid for stationery 100
27 Postage charges 60
28 Salary Paid 2,500
29 Goods purchased from Sheetal Traders 7,000
30 Sold goods to Kirti 6,000
Goods purchased from Handa Traders 5,000
Journalise the above transactions and post them to the
Ans:
ledger.
Journal Entries in the books of Marble Traders
Date | Particulars | LF | Debit (Rs) | Credit (Rs) |
01.04.17 02.04.17 03.04.17 05.04.17 06.04.17 08.04.17 10.04.17 12.04.17 14.04.17 15.04.17 18.04.17 20.04.17 21.04.17 22.04.17 24.04.17 26.04.17 27.04.17 28.04.17 29.04.17 30.04.17 30.04.17 | Manish A/c Dr To Sales A/c (Being goods sold accounted) Purchases A/c Dr To Ramesh A/c (Being Purchases in credit) Cash A/c Dr Discount allowed A/c To Rahul A/c (Being full settlement received from Rahul) Cash A/c DrTo Himanshu A/c (Being amount received on account) Ramesh A/c Dr Advances A/c Dr To Bank A/c (Being cheque issued to Ramesh) Rent A/c Dr To Bank A/c (Being Rent paid) Cash A/c Dr To Manish A/c (Being cash received) Cash A/c Dr To Sales A/c (Being Sales accounted) Ramesh A/c Dr To Purchases Returns A/c (Being goods returned accounted) Ramesh A/c Dr To Cash A/c To Discount received A/c (Being Cash paid and discount received accounted) Kushal A/c Dr To Sales A/c (Being Sales accounted) Trade expense A/c Dr To Cash A/c (Being Trade expense paid) Drawings A/c Dr To Bank A/c (Being cash drawn for personal use) Sales returns A/c Dr To Kushal A/c (Being goods returned accounted) Cash A/c Dr To Kushal A/c (Being Cash received) Stationery expense A/c Dr To Cash A/c (Being stationery bought) Postage A/c Dr To Cash A/c (Being Postage expenses accounted) Salary A/c Dr To Cash A/c (Being Salary paid) Purchases A/c Dr To Sheetal traders A/c (Being Purchases in credit) Kirit A/c Dr To Sales A/c (Being Sales accounted) Purchases A/c Dr To Handa Traders A/c (Being Purchases in credit) | 3000 8000 9200 500 4000 3000 3000 1200 3000 6000 1000 4000 10000 200 1000 1200 6000 100 60 2500 7000 6000 5000 7000 6000 5000 | 3000 8000 9700 4000 6000 1200 3000 6000 1000 3700 300 10000 200 1000 1200 6000 100 60 2500 7000 6000 5000 7000 6000 5000 |
Ledger Accounts
Cash A/c
Dr Cr
Date | Particulars | LF | Amount (Rs) | Date | Particulars | LF | Amount (Rs) |
01.04.17 03.04.17 05.04.17 24.04.17 | To Balance B/d To Rahul A/c To Himanshu A/c To Kushal A/c | 6000 9200 4000 6000 | 15.04.17 20.04.17 21.04.17 26.04.17 27.04.17 28.04.17 30.04.17 | By Ramesh A/c By Trade expense A/c By Drawings A/c By Stationery By Postage By Salary By Balance c/d | 3700 200 1000 100 60 2500 17640 | ||
25200 | 25200 | ||||||
Bank A/c
Dr Cr
Date | Particulars | LF | Amount(Rs) | Date | Particulars | LF | Amount(Rs) |
01.04.17 10.04.17 12.04.17 | To Balance B/d To Manish A/c To Sales A/c | 12000 3000 6000 | 06.04.17 08.04.17 30.04.17 | By Ramesh A/c By Rent A/c By Balance c/d | 6000 1200 13800 | ||
21000 | 21000 | ||||||
Bills receivable A/c
Dr Cr
Date | Particulars | LF | Amount(Rs) | Date | Particulars | LF | Amount(Rs) |
01.04.17 | To Balance B/d | 7000 | 30.04.17 | By Balance c/d | 7000 | ||
7000 | 7000 | ||||||
Ramesh A/c
Dr Cr
Date | Particulars | LF | Amount(Rs) | Date | Particulars | LF | Amount(Rs) |
06.04.17 14.04.17 15.04.17 | To Bank A/c To Purchase returns A/c To Cash A/c To discount received A/c | 6000 1000 3700 300 | 01.04.17 02.04.17 | By Balance b/d By Purchases A/c | 3000 8000 | ||
11000 | 11000 | ||||||
Bills Payable A/c
Dr Cr
Date | Particulars | LF | Amount(Rs) | Date | Particulars | LF | Amount(Rs) |
30.04.17 | To balance c/d | 2000 | 01.04. 17 | By Balance b/d | 2000 | ||
2000 | 2000 | ||||||
Stock A/c
Dr Cr
Date | Particulars | LF | Amount(Rs) | Date | Particulars | LF | Amount(Rs) |
01.04.17 | To Balance B/d | 5400 | 30.04. 17 | By Balance c/d | 5400 | ||
5400 | 5400 | ||||||
Rahul A/c
Dr Cr
Date | Particulars | LF | Amount(Rs) | Date | Particulars | LF | Amount(Rs) |
01.04 .17 | To Balance B/d | 9700 | 03.04 .17 | By Cash A/c By discount allowed A/c
| 9200 500 | ||
9700 | 9700 | ||||||
Himanshu A/c
Dr Cr
Date | Particulars | LF | Amount(Rs) | Date | Particulars | LF | Amount(Rs) |
01.04.17 | To Balance B/d | 10000 | 30.04.17 | By Cash A/c By Balance c/d | 4000 6000 | ||
10000 | 10000 | ||||||
Manish A/c
Dr Cr
Date | Particulars | LF | Amount(Rs) | Date | Particulars | LF | Amount(Rs) |
01.04. 17 | To Sales A/c | 3000 | 10.04. 17 | By Cash A/c | 3000 | ||
3000 | 3000 | ||||||
Sales A/c
Dr Cr
Date | Particulars | LF | Amount(Rs) | Date | Particulars | LF | Amount(Rs) |
30.04.17 | To Balance | 25000 | 01.04.17 12.04.17 18.04.17 30.04.17 | By Manish A/c By Cash A/c By Kushal A/c By Kirit A/c | 3000 6000 10000 6000 | ||
25000 | 25000 | ||||||
Discount Allowed A/c
Dr Cr
Date | Particulars | LF | Amount(Rs) | Date | Particulars | LF | Amount(Rs) |
03.04.17 | To Rahul A/c | 500 | 30.04.17 | By Balance c/d | 500 | ||
500 | 500 | ||||||
Rent A/c
Dr Cr
Date | Particulars | LF | Amount(Rs) | Date | Particulars | LF | Amount(Rs) |
08.04.17 | To Bank A/c | 1200 | 30.04. 17 | By Balance c/d | 1200 | ||
1200 | 1200 | ||||||
Purchase returns A/c
Dr Cr
Date | Particulars | LF | Amount(Rs) | Date | Particulars | LF | Amount(Rs) |
30.04.17 | To Balance c/d | 1000 | 14.04.17 | By Ramesh | 1000 | ||
1000 | 1000 | ||||||
Discount Received A/c
Dr Cr
Date | Particulars | LF | Amount(Rs) | Date | Particulars | LF | Amount(Rs) |
30.04.17 | To Balance c/d | 300 | 15.04. 17 | By Ramesh A/c | 300 | ||
300 | 300 | ||||||
Kushal A/c
Dr Cr
Date | Particulars | LF | Amount(Rs) | Date | Particulars | LF | Amount(Rs) |
18.04.17 | To Sales A/c | 10000 | 22.04.17 24.04.17 30.04.17 | By Sales return A/c By Cash A/c By Balance c/d | 1200 6000 2800 | ||
10000 | 10000 | ||||||
Trade expense A/c
Dr Cr
Date | Particulars | LF | Amount(Rs) | Date | Particulars | LF | Amount(Rs) |
20.04.17 | To cash A/c | 200 | 30.04.17 | By Balance c/d | 200 | ||
200 | 200 | ||||||
Drawings A/c
Dr Cr
Date | Particulars | LF | Amount(Rs) | Date | Particulars | LF | Amount(Rs) |
21.04.17 | To cash A/c | 1000 | 30.04.17 | By Balance c/d | 1000 | ||
1000 | 1000 | ||||||
Sales Return A/c
Dr Cr
Date | Particulars | LF | Amount(Rs) | Date | Particulars | LF | Amount(Rs) |
22.04.17 | To Kushal A/c | 1200 | 30.04.17 | By Balance c/d | 1200 | ||
1200 | 1200 | ||||||
Purchases A/c
Dr Cr
Date | Particulars | LF | Amount(Rs) | Date | Particulars | LF | Amount(Rs) |
02.04.17 29.04.17 30.04.17 | To Ramesh A/c To Sheetal Traders A/c To Handa Traders | 8000 7000 5000 | 30.04.17 | By Balance c/d | 20000 | ||
20000 | 20000 | ||||||
Sheetal Traders A/c
Dr Cr
Date | Particulars | LF | Amount(Rs) | Date | Particulars | LF | Amount(Rs) |
30.04.17 | To Balance c/d | 7000 | 29.04.17 | By Balance c/d | 7000 | ||
7000 | 7000 | ||||||
Handa Traders A/c
Dr Cr
Date | Particulars | LF | Amount(Rs) | Date | Particulars | LF | Amount(Rs) |
30.04.17 | To Balance c/d | 5000 | 30.04.17 | By Purchases A/c | 5000 | ||
5000 | 5000 | ||||||
Stationery expenses A/c
Dr Cr
Date | Particulars | LF | Amount(Rs) | Date | Particulars | LF | Amount(Rs) |
26.04.17 | To cash A/c | 100 | 30.04.17 | By Balance c/d | 100 | ||
100 | 100 | ||||||
Postage expenses A/c
Dr Cr
Date | Particulars | LF | Amount(Rs) | Date | Particulars | LF | Amount(Rs) |
27.04.17 | To cash A/c | 60 | 30.04.17 | By Balance c/d | 60 | ||
60 | 60 | ||||||
Salary A/c
Dr Cr
Date | Particulars | LF | Amount(Rs) | Date | Particulars | LF | Amount(Rs) |
20.04.17 | To cash A/c | 2500 | 20.04.17 | By Balance c/d | 2500 | ||
2500 | 2500 | ||||||
Kirit A/c
Dr Cr
Date | Particulars | LF | Amount(Rs) | Date | Particulars | LF | Amount(Rs) |
20.04.17 | To sales A/c | 6000 | 20.04.17 | By Balance c/d | 6000 | ||
6000 | 6000 | ||||||
NCERT Accountancy Class 11 Solutions
What is the Importance of Recording of Transactions 2?
Recording of Business Transactions is considered as one of the best business practices as it represents a transparent status of the company as well as aids the company and its management in decision making based on reliable sources. However for the Recorded transactions to be free from errors, the recording has to be implemented precisely and effectively. To ensure the recorded transactions are free from errors, the transactions are recorded in different books in a double-entry system and then tallied.
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Recording of Transactions 2 Class 11 NCERT Solutions
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In Accountancy Class 11 Chapter 4, we have learned that recording is a crucial part of the accounting process and covers analyzing, classifying and recording transactions. It is also clear that the journal book is said to be the original book since the first entries are passed into it and further posted on particular accounts separately. A firm won't be able to follow the accounting procedures or Accountancy unless the books and accounts are properly recorded, therefore precise and effective recording is essential. CBSE Class 11 Accountancy Chapter 4 also covers different accounts and the treatments used while recording such transactions.
Fun Fact: Did You Know?
A calculator is a piece of important equipment used for accounting. It was invented by a French mathematician named Blaise Pascal. He was born on 19th June 1693 in France. He was not just a mathematician but also a physicist, writer, inventor, philosopher and Catholic theologian. Blaise Pascal invented a calculator in 1942, at the age of 19 to help his father calculate mathematical sums. Originally, Calculators were gear-driven wheels, however, they now use a chip like a microchip.
Accountancy Class 11 Chapter 4 - Solved Example
What Is a Cash Book? What Are Some Types of Cash Books?
A cash book is a ledger for recording and tracking cash and bank transactions. It is like a subsidiary book. Small firms and businesses that work on a day to day cash transactions maintain and find cash books helpful for recording business transactions. It has the features of both journal and ledger accounts.
There are 4 Types of Commonly Used Cash Book
Single Column Cash Book: It only records cash receipts and payments.
Double Column Cash Book: It records cash receipts and payments with the addition of discounts.
Triple Column Cash Book: It records cash and bank receipts and payments.
Petty Cash Book: It records small expenses incurred by all departments in a firm like stationery, postage, food bills, travel expenses, etc.
Concepts Covered in this Chapter
|
1. Cash Book
A Cash Book is a financial ledger used in accounting to record all cash transactions conducted by a business entity. It serves as a subset of the general ledger and is often maintained as part of a double-entry bookkeeping system. The primary purpose of the Cash Book is to track the inflow and outflow of cash and cash equivalents, providing a detailed record of cash-related activities.
Key features of a Cash Book include:
1. Cash Receipts: The Cash Book records all incoming cash transactions, such as sales revenue, loans received, and other sources of cash inflow.
2. Cash Payments: Outgoing cash transactions, like payments to suppliers, wages, operating expenses, and other expenditures, are also recorded in the Cash Book.
3. Format: Cash Books typically have a two-column format, with separate columns for cash receipts and cash payments. This allows for easy segregation of transactions.
4. Double-Entry: Just like the general ledger, the Cash Book follows the double-entry accounting system. Each cash transaction is recorded twice: once in the cash receipts column and once in the cash payments column.
5. Balancing: The Cash Book is periodically balanced, usually at the end of each accounting period (e.g., monthly, quarterly, annually). Balancing ensures that the cash on hand matches the cash recorded in the Cash Book.
6. Petty Cash: In some cases, businesses maintain a separate Petty Cash Book to track small, routine expenditures. The Petty Cash Book functions similarly to the main Cash Book but is dedicated to minor cash transactions.
7. Bank Reconciliation: The Cash Book forms the basis for reconciling bank statements. Discrepancies between the recorded cash transactions and bank statements can be identified and reconciled through this process.
8. Types: Cash Books can be maintained manually (in physical ledgers) or electronically (using accounting software). With modern technology, electronic Cash Books have become more common due to their efficiency and accuracy.
2. Single Column Cash Book
The Single Column Cash Book is a simple cash management ledger used in accounting to record only cash transactions involving cash receipts and payments. It has a single column format and is primarily used to track the inflow and outflow of cash, making it suitable for small businesses or for recording basic cash transactions. It does not involve the recording of bank transactions or other details beyond cash transactions.
3. Posting of the Double Column Cash Book
Posting of the Double Column Cash Book refers to the process of transferring the individual cash transaction entries recorded in the cash receipts and cash payments columns of the Cash Book into their respective accounts in the General Ledger. This step ensures that the financial data is accurately reflected in the accounts and helps maintain consistency between the Cash Book and the General Ledger.
4. Posting from the Petty Cash Book
Petty Cash Book: The Petty Cash Book is a specialized ledger used to track small, routine expenses within a business. It maintains a record of minor cash transactions that are not practical to record individually in the main Cash Book. The Petty Cash Book typically has a fixed amount of money known as the "imprest" amount, which is regularly replenished to maintain its balance.
Posting from the Petty Cash Book: Posting from the Petty Cash Book involves transferring the summarized total of expenses recorded in the Petty Cash Book to the respective expense accounts in the General Ledger. This process ensures that these small expenses are accurately included in the financial records while minimizing the number of entries in the main ledger.
5. Conveyance Account
Conveyance Account: The Conveyance Account is a ledger account used to track expenses related to transportation and travel incurred by employees for business purposes. It records costs associated with commuting, travel allowances, and other travel-related expenses. The Conveyance Account helps businesses monitor and control travel expenditures while providing insight into the financial impact of employee travel on the company's overall budget.
6. Balancing of Cash Book
Balancing of Cash Book: Balancing of the Cash Book involves calculating the difference between the total of cash receipts and the total of cash payments recorded in the Cash Book for a specific period. This difference is known as the "cash balance." Balancing ensures that the recorded cash transactions are accurate and that the actual cash on hand matches the Cash Book's total. If the totals don't match, it indicates the presence of errors that need to be investigated and corrected.
7. Sales Account
Sales Account: The Sales Account is a ledger account used to record the revenue generated from the sale of goods or services by a business. It captures the total value of sales made during a specific period. The Sales Account is a part of the income statement and provides crucial information about a company's sales performance, contributing to the calculation of the company's gross revenue and profitability.
8. Purchases Account
Purchases Account: The Purchases Account is a ledger account used to record the cost of goods or materials bought by a business for resale or production. It tracks the total value of purchases made during a specific period. The Purchases Account is an essential component of the income statement and contributes to calculating the cost of goods sold, which impacts a company's gross profit and overall financial performance.
Conclusion
Chapter 4 - Recording of Transactions 2, from NCERT Solutions for Class 11 Accountancy, has provided a comprehensive understanding of the intricate process of accurately recording financial transactions. Through the exploration of compound journal entries, voucher systems, source documents, and practical voucher preparation, students have gained valuable insights into maintaining meticulous financial records. The significance of balancing and closing ledger accounts, trial balance preparation, and error detection mechanisms have been highlighted, underscoring the importance of precision in accounting. This chapter equips learners with practical skills to ensure transactions are accurately captured, enhancing their ability to maintain transparent and reliable financial records in real-world scenarios.
FAQs on NCERT Solutions for Class 11 Accountancy Chapter 4 - Recording Of Transactions 2
1. What is the purpose of contra entry?
There are different types of entries in Accountancy that every individual should gain knowledge about. One such entry is related to the concept of Contra Entry. A Contra Entry refers to cash or bank transactions like withdrawals and deposits. The main purpose of contra entry is to indicate how both cash and bank balances are impacted by such translations. A contra entry is denoted by a 'C' in the ledger folio column. It is also recorded on both sides of a two-column cash book. For more questions on Chapter 4 Recording of Transactions 2, make sure to check out our website or download the Vedantu app!
2. What is a petty cash book?
A petty cash book is a record of petty cash expenditures incurred by a firm, sorted date-wise. It is a part of a manual record-keeping system rather than a computer record system. Petty cash expenses are those small expenses which are incurred by different departments of a firm on a large scale, having a separate ledger account. This makes it easier to record such expenses which would otherwise be missed out on. It includes expenses like stationery, postage, travel-related expenses, food and canteen expenses, etc. A lot of small hotels and restaurants adopt petty cash records as it makes it easier to record small everyday expenses.
3. How do you balance the accounts?
As per NCERT Class 11 Accountancy Chapter 4, Accounts in the ledger are balanced at the end of the accounting period. This is done to get the net position of each account. Balancing the account means the two sides are added and the difference between the two are shown on the side and whichever is shorter it is made equal. The balance c/d are written against the difference between the two sides. The balance b/d means it is brought down in the next accounting period and shown as a continuing account till the account is closed.
4. What do you understand about journal proper?
The book maintained to record all transactions, which do not have a place in the special journal is known as journal proper. This has two parts and they are the opening entry and the adjustment entries. It could be better understood through the link, NCERT Class 11 Accountancy Chapter 4.
5. What is a sales book or a journal?
As per NCERT Class 11 Accountancy Chapter 4, All the credit sales are maintained in the sales journal and the cash sales are maintained in the cash book. The entries recorded in the journal are the invoice or the bills issued from the firm to the customers. Two or more copies of the invoice are prepared for each sale.
6. How can I prepare well from the NCERT Solutions?
NCERT Solutions are the best guide and can be of great help if it is used properly and systematically. Each chapter is explained in an organized way. There are many practise questions, which you have to do and understand. Everyday practice will make you competent in solving any questions. The solutions available on Vedantu(vedantu.com)are for free. They are also on the Vedantu Mobile app
7. What do you understand about the purchase return book?
This book has the maintenance of the goods, which are returned. The reasons could be many for the return, like that the quality is not maintained or the goods are defective when received. In such cases, whenever there is a return of goods a debit note is issued. A debit note will contain the name of the party, details of the goods returned and the reason. Each debit note is serially numbered.