Class 11 Accountancy NCERT Solutions Chapter 4 Recording of Transcations 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.
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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.
FAQs (Frequently Asked Questions)
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.