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

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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 2024-25 PDF

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


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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 1

Sep 4

Sep 8

Sep 13 

Sep16

 

Sep 17

Sep 20

Sep 24

Sep 27

Sep 31

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

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

21,600

4,03,200








1,10,000


90,000

2,00,000

30,000

1,70,000

10,200

10,200

1,90,000






2,00,000

10,000

1,90,000

22,800











3,60,0

00















1,70,0

00








1,90,0

00


7,20,0

00















21,600
















10,200








 




31,800
















21,600
















10,200








 




31,800















 


























22,800



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.

(image will be uploaded soon)

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.