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Recording of Transactions - II Class 11 Notes CBSE Accountancy Chapter 4 (Free PDF Download)

Q: 1. What are the Advantages of Subdividing the Journal?

The advantages of the sub-dividing of the journal are:Accountability: As each statement is managed by individual accountants, it makes them more liable and assures that accounts are correctly maintained.Accuracy: Each accountant will be functional in work allotted to them, and hence there are fewer possibilities of errors.Division of Labour: As separate accountants manage accounts, it assures parallel recording and faster recording of transactions.Economical: As a division of labour brings in specialisation, the method becomes effective and thereby becomes economical.

Revision Notes

Recording of Transactions - II Class 11 Notes CBSE Accountancy Chapter 4 (Free PDF Download)

Last updated date: 01st Dec 2023

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Revision Notes for CBSE Class 11 Accountancy Chapter-4 - Free PDF Download

The accountancy class 11 chapter 4 notes are essential study materials, which will help the students to understand the chapter precisely. The class 11 accounts chapter 4 notes provide a comprehensive view of the chapter along with solved exercises, short keynotes, revision notes and practice papers to improvise the exam preparation. The chapter encompasses and briefs on all the essential topics such as the Cash Book, Purchases Return (Return Outwards), Purchases Book, Sales, Sales Return Book (Return Inwards) and Journal Proper. Students can also download the PDF files of accounts class 11, chapter 4 notes arranged by qualified and expert educators. From this article, students can enhance their revision process.

Download CBSE Class 11 Accountancy Revision Notes 2023-24 PDF

Also, check CBSE Class 11 Accountancy revision notes for All chapters:

CBSE Class 11 Accountancy Chapter-wise Revision Notes
Chapter 1: Introduction to Accounting Notes	Chapter 2: Theory Base of Accounting Notes
Chapter 3: Recording of Transactions - I Notes	Chapter 4: Recording of Transactions - II Notes
Chapter 5: Bank Reconciliation Statement Notes	Chapter 6: Trial Balance and Rectification of Errors Notes
Chapter 7: Depreciation, Provisions, and Reserves Notes	Chapter 8: Bill of Exchange Notes
Chapter 9: Financial Statements - I Notes	Chapter 10: Financial Statements - II Notes
Chapter 11: Accounts from Incomplete Records Notes	Chapter 12: Applications of Computers in Accounting Notes
Chapter 13: Computerised Accounting System Notes	Chapter 14: Structuring Database for Accounting Notes
Chapter 15: Database Management System Notes

Access Class- 11 Accountancy Chapter 4 - Recording Of Transactions - II Notes

Cash Book

This book is used for recording all the transactions related to cash payment and cash receipt.

All bank related transactions are also recorded in this book.

Difference Between a Cash Account and a Cash Book.

Cash Account	Cash Book
1. A cash account is an account in a ledger.	1. It is a separate book maintained for recording all cash related transactions.
2. It records only one aspect of cash-related transactions.	2. It records both aspects of a transaction.
3. It is necessary to open a cash a/c in the ledger when the transactions are recorded in a journal.	3. It is not necessary to open a cash account in the ledger when transactions are recorded in the cash book.

Single Column Cash Book

Dr.	Cash Book								Cr.
Date	Particulars	V.No.	L.F.	Amount	Date	Particulars	V.No.	L.F	Amount
	To…...					By…..

Let’s Practice It With a Question:-

Enter the Following Transaction in a Single Column Cash Book:-

1. Commenced business with cash Rs10000.

2. Bought goods for cash Rs 2500.

5. Sold goods for cash Rs 2000.

10. Goods purchased from Ravi on credit Rs 5000.

13. Paid to Ravi Rs 3500.

15. Cash sale Rs 4000.

18. Purchased furniture for cash Rs 3099.

20. Paid wages Rs 190.

24. Paid rent Rs 200.

26. Received commission Rs 300.

28. Withdrew for personal use Rs 500.

31. Paid salary Rs 450.

Ans:

Date	Particulars	V.no	L.f	Amount(in Rs)	Date	Particulars	V.no	L.f	Amount (in Rs)
2017 March 1 5 15 26	To capital a/c To sales a/c To sales a/c To commission a/c Total receipts			10000 2000 4000 300 16300	2017 March 2 13 18 20 24 28 31 31	By purchases a/c By Ravi a/c By furniture a/c By wages a/c By rent a/c By drawings a/c By salary a/c Total payment By balance c/d			2500 3500 3000 190 200 500 450 10340 5960
				16300					16300
April 1	To balance b/d			5960

Double Column Cash Book

A double column cash book is a cash book with two columns on each side, one column for recording cash transactions and the other for recording bank transactions.

Dr.											Cr.
Date	Particulars	V.no	L.F	Cash	Bank	Date	Particulars	V.no	L.F	Cash	Bank
	To……..						By…

Let’s Practice it with a Question:-

Date

Details

Amounts (in Rs)

Sep 1

Sep 4

Sep 8

Sep 13

Sep16

Sep 17

Sep 20

Sep 24

Sep 27

Sep 31

Bank balance.

Cash balance.

Purchased goods by cheque.

Sale of goods for cash.

Purchase of machinery by cheque.

Sold goods and received cheques (deposited same day.

Purchase goods from Miraula in cash.

Purchase stationery by cheque.

A cheque was given to Rohit.

Cash is withdrawn from the bank.

Rent paid by cheque.

Paid salary.

21000

7500

6000

3000

2750

2250

8700

550

750

5000

1250

1750

1550

Ans:

Dr.											Cr.
Date	Particulars	V. No	L.F	Cash (Rs)	Bank (Rs)	Date	Particulars	V. No	L.F	Cash	Bank
1 Sept 8 Sept 16 Sept 27 Sept	To balance b/d To sales To sales To bank		C	7500 3000 5000	21000 2250	4 Sept 13 Sept 17 Sept 20 Sept 24 Sept 27 Sept 31 Sept 31 Sept 31 Sept	By purchases By machinery By purchases By stationery By Rohit By cash By rent By salary By balance c/d			8700 1750 5050	6000 2750 550 750 5000 1250 6950
				15500	23250					15500	23250
Oct 1	To balance b/d			5050	6950

Books of Original Entry-

Special Purpose Subsidiary Books:-

Purchase Book or Purchase Journal

Purchase book records all the credit purchases of goods. It records only those things in which a firm or Business organisation deals.

Format of Purchase Book:

Date

Particulars

Invoice

No.

L. F

Details

Purchase

Input CGST

Input

SGST

Input IGST

Total

Amount

Let's Practice with a Question:-

Enter the Following Transactions in the Purchase Book of Superior Cloth House,

New Delhi, Assuming CGST @ 2.5% and SGST @ 2.5%.

2018

April 4

April 12

April 20

April 25

Purchased from Rashi Krishna & sons, of new Delhi, Vide invoice no. 305.

100 meter cotton @ ₹200 per metre

80-metre woollen cloth @₹500 per metre

Trade discount 20%

Purchased from Raghuraam Parshad & Co., of Kanpur, U. P., Vide invoice no. 140

50-metre silk cloth @₹ 600/metre

40-metre cotton cloth @250/metre

Trade discount 10%

Purchased from stylish furniture house, Delhi:-

10 chairs @₹2, 000 per chair

Purchased form Laal om and sons of Gujarat, vide invoice no. 308

100-metre woollen cloth @ ₹600 per metre

Trade discount is 15% and freight charges payable are ₹ 3,000.

Ans:

Date

Particulars

Invoice

No.

L. F

Details

Purchase

Input

CGST

Input

SGST

Input

IGST

Total amount

2018

April 4

April 12

April 25

April 30

Rashi Krishna & sons, New, Delhi

100 meter cotton @ ₹200 per metre

80-metre woollen cloth @₹500 per metre

Less : trade discount@20%

Add: CGST@ 2.5%

SGST @ 2.5

Purchased from Raghuram Parshad & co., of Kanpur, U. P.,

50-metre silk cloth @₹ 600/metre

40-metre cotton cloth @250/metre

Less: Trade discount 10%

Add: IGST @ 10%

Purchased from laal om and sons of Gujarat,

100-metre woollen cloth @ ₹600 per metre

Less: Trade discount is 15%

Add: IGST @ 15%

Total

305

140

139

₹

20,000

40,000

60,000

12,000

48,000

12,000

50400

30,000

10,000

40,000

4,000

36,000

1,800

37,800

60,000

9,000

51,000

2,550

53,550

48,000

36,000

51,000

1,35,000

12,000

1,200

12,000

1,200

1,800

2,550

4,350

50400

37,800

53,550

1,41,750

Sales Book:-

In the sales book, all credit sales of goods are recorded. Cash sales will be recorded in the cash book, not in the sales book. Credit sales of things other than the goods in which the firm deals, are not recorded in the sales book.

Format of Sales Book:-

Date

Particulars

Invoice

No.

L.F

Details

Sale

Output

CGST

Output

SGST

Output

IGST

Total

Amount

Let’s Do It With An Example:-

2018

May 1

May 15

May 20

May 25

May 28

Sold goods to seven-star furniture co., Patiala(Punjab), on credit:-

150 chairs @₹ 1,800 each

36 tables @₹ 5,000 each

Discount 20%

Sold goods to Rishal furniture house, Amritsar (Punjab) :-

10 almirahs @₹ 11,000 each

5 sofa sets at ₹18, 000 each

Sold goods to Akash furniture house, New Delhi:-

100 chairs @₹ 2,000 each

Less:5%

Sold to moon height furniture co. For cash:-

50 chairs @₹ 1,900 each

Sold on credit to Sumit machinery store:-

2 old machineries @ ₹5, 000 per machine

1 old computer for ₹ 1,200

Ans:

Date

Particulars

Invoice no.

L. F

Details

Sale

Output

CGST

Output

SGST

Output

IGST

Total amount

2018

May 1

May 15

May 20

seven-star furniture co., patiala(punjab

150 chairs @₹ 1,800 each

36 tables @₹ 5,000 each

Less : t. d@20%

Add : CGST@ 6%

SGST @6%

Rishal furniture house, Amritsar

10 almirahs at 11,000/-

5 sofa sets at ₹ 18000 each

Less: t. d @15%

Add: CGST @ 6%

SGST @6%

Akash furniture house, New Delhi,

100 chairs @ ₹2, 000 each

Less: t. d @5%

Add: IGST @ 12%

Total

2,70,000

1,80,000

4,50,000

90, 000

3,60,000

21,600

4,03,200

1,10,000

90,000

2,00,000

30,000

1,70,000

10,200

1,90,000

2,00,000

10,000

1,90,000

22,800

3,60,0

1,70,0

1,90,0

7,20,0

21,600

10,200

31,800

21,600

10,200

31,800

22,800

4,03,20

1,90,000

2,12,800

8,06,400

Purchase Return Book:-

Purchase return book is used to record the return of such goods as were purchased on a credit basis.

This book is also known as the return outward book.

Format of Purchase Return Book:-

Date

Particulars

Debit

Note

L.F

Details

Purchase

Return

Input CGST

Input

SGST

Input

IGST

Total

Amount

Sale Return Book

Sale return book is used to record the return of such goods as were sold to the customers on a credit basis.

This book is also known as a return inward book.

Format of Sale Return Book:

Date

Particulars

Credit

Note

L.F

Details

Sale

Return

Output CGST

Output

SGST

Output

IGST

Total

Amount

Journal Proper:-

In the journal proper, only those transactions are recorded which cannot be recorded in any other subsidiary book. In such a case a journal is called a proper journal.

Let's do it with an example:--

Record the following transactions in the JOURNAL PROPER of m/s Ramesh traders

1. Old machinery sold to Sailash for ₹ 5,000 on credit

2. Goods worth ₹20, 000 was destroyed by fire

3. A bill receivable for ₹20, 000 endorsed

Ans:

Journal Proper
Date	Particulars	L. F	Debit(in ₹)	Credit(in ₹)
1.	Sailash a/c To machinery a/c (Being old machinery sold on credit)		5,000	5,000
2.	Loss by fire a/c To purchases a/c (Being goods destroyed by fire)		20,000	20,000
3.	Shwetha a/c To bills receivable a/c (Being b/r endorsed)		20,000	20,000

Recording of Transactions 2 NCERT Solutions Class 11 - Introduction

Recording of transactions 2 notes is considered as a method of managing accounting transactions in different books of accounts. The recording of transactions class 11 notes executes the use of journal book, cash book and ledger accounts. The class 11 accountancy chapter 4 notes present a complete outline of the chapter. The recording of transactions 2 notes introduces the registered transactions and preparation of the source documents which have already been registered in the basic book called a journal. After completion of these steps, the entries in the journal book are reported in a private account called ledger.

1. Cash Book

The book in which all the transactions related to cash payments and cash receipts are registered is known as Cash Book. It begins with the bank balances or cash at the starting of a period. This book is commonly used every month. It is maintained by all big or small organisations, profit or not-for-profit. It serves the objective of both ledger accounts as well as the journals.

Single Column Cash Book: The cash book which records all the cash transactions of the business in the achronological system is known as the Single Column Cash Book. It is a complete account of all the cash receipts and cash payments.
Double Column Cash Book: This cash book contains two columns of amount on each side - one to record bank transactions and one to record cash transactions. In today's time, bank transactions are substantial, and therefore in most of the organisations, receipts and payments are affected by the bank. A double column cash book provides bank balance as well as cash balance information at the same time; most organisations prefer to keep a double column cash book rather than holding two separate ledger accounts for recording bank transactions and cash.
Petty Cash Book: In every organisation, a massive amount of small payments such as cartage, postage, conveyance, telegrams and other expenses are listed under various accounts. If these payments are recorded in the main cash book, the cashier may be overburdened, and the cash book may look bulky. To avoid this, many organisations designate one more cashier, also known as a petty cashier who maintains a separate cash book to record these transactions. Such a cashbook managed by the petty cashier is known as the petty cash book.

2. Purchase Book

The Purchase book is a subsidiary book. This book includes the account of all credit-purchases and does not hold the record of purchases of assets. The Journal proper holds the records of purchases of assets. The entries are listed in the Purchase book from source documents.

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3. Journal Proper

The book of original record (simple journal) in which different credit transactions which do not fit in any other records are registered is known as the Journal Proper book. It is also termed as the miscellaneous journal.

Conclusion

Recording of Transactions - II," Chapter 4 of Class 11 CBSE Accountancy, delves into advanced aspects of precise financial recording. This chapter explores compound journal entries, voucher systems, and their connection to source documents. It guides students through the meticulous process of voucher preparation and subsequent ledger entry. Balancing and closing of ledger accounts, trial balance preparation, and error identification techniques are underscored. The chapter offers practical exercises for hands-on experience. These notes provide invaluable insights into accurate financial record-keeping, enhancing students' ability to navigate intricate transactions effectively. While I can't offer direct PDF downloads, this summary serves as a condensed guide for comprehensive learning.

FAQs on Recording of Transactions - II Class 11 Notes CBSE Accountancy Chapter 4 (Free PDF Download)

1. What are the Advantages of Subdividing the Journal?

The advantages of the sub-dividing of the journal are:

Accountability: As each statement is managed by individual accountants, it makes them more liable and assures that accounts are correctly maintained.
Accuracy: Each accountant will be functional in work allotted to them, and hence there are fewer possibilities of errors.
Division of Labour: As separate accountants manage accounts, it assures parallel recording and faster recording of transactions.
Economical: As a division of labour brings in specialisation, the method becomes effective and thereby becomes economical.

2. State the Requirements for Special Purpose Books.

Special purpose books benefit bookkeeping as each journal is maintained by a different auditor having particular expertise which improves accuracy and decreases errors. It increases efficiency by dividing the workload. The journal explains the idea of recording in brief descriptions. It reduces the bulk of posting as totals can be done systematically. Fraud prevention is also prevented as the record-keeping of various journals is assigned to a different individual, and as multiple accountants supervise multiple books, the recording work moves faster.

3. How does the voucher system work in recording transactions?

The voucher system involves the use of vouchers as documentary evidence for transactions. Vouchers provide details of the transaction, facilitating accurate recording in the books.

4. What are source documents, and how are they related to vouchers?

Source documents are original records that serve as evidence for a transaction. They provide information for creating vouchers, which are then used for recording in the books.

5. How do you prepare vouchers?

Vouchers are prepared by following a systematic process that includes details of the transaction, classification of accounts, and narration. They must be accurate and complete.

6. What is the process of recording voucher transactions in the books?

Voucher transactions are recorded in the respective ledger accounts using journal entries. This ensures that the impact of the transaction is correctly reflected in the accounts.

7. Why is balancing and closing of ledger accounts important?

Balancing and closing of ledger accounts ensure that the accounts are up to date and ready for the next accounting period. Balancing helps in calculating the account balance, while closing transfers balances to the appropriate accounts.

Recording of Transactions - II Class 11 Notes CBSE Accountancy Chapter 4 (Free PDF Download)

Revision Notes for CBSE Class 11 Accountancy Chapter-4 - Free PDF Download

Download CBSE Class 11 Accountancy Revision Notes 2023-24 PDF

Access Class- 11 Accountancy Chapter 4 - Recording Of Transactions - II Notes

Cash Book

Double Column Cash Book

Purchase Return Book:-

Sale Return Book

Journal Proper:-

Recording of Transactions 2 NCERT Solutions Class 11 - Introduction

1. Cash Book

2. Purchase Book

3. Journal Proper

Conclusion

FAQs on Recording of Transactions - II Class 11 Notes CBSE Accountancy Chapter 4 (Free PDF Download)

Revision Notes

CBSE Study Materials