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





















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.