Recording of Transactions - II Class 11 Notes CBSE Accountancy Chapter 4 [Free PDF Download]

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.

Single Column Cash Book

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:

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.

Let’s Practice it with a Question:-

Ans:

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:

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%.

Ans:

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:-

Let’s Do It With An Example:-

Ans:

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:-

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:

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:

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.