Class 11 Accountancy - ANDHRA-PRADESH
Recording of Transactions - II
The chapter 'Recording of Transactions - II' in Class 11 Accountancy for Andhra Pradesh (BSEAP) students focuses on the preparation and maintenance of subsidiary books. Building upon the journal and ledger, this chapter explains how businesses handle voluminous transactions efficiently by sub-dividing the journal into specialised books such as Purchases Book, Sales Book, Purchases Return Book, Sales Return Book, and Cash Book with Bank Column. Mastering this chapter is essential for board exams as it forms the practical basis for posting entries to ledger accounts and preparing trial balances, carrying significant weight in both short and long-answer questions.
Start Learning FreeKey Concepts
Subsidiary Books
Books of original entry where transactions of a similar nature are recorded collectively, reducing the workload of the journal.
Cash Book
A principal book used for recording all cash receipts and cash payments, which also serves as a cash account in the ledger.
Purchases Day Book
A specialized subsidiary book used exclusively for recording credit purchases of goods dealt in by the business.
Sales Day Book
A subsidiary book maintained to record all credit sales of merchandise made by the business enterprise.
Contra Entry
An entry that affects both the cash and bank columns simultaneously on both sides of a two-column cash book.
Important Formulas
Board Exam Info
This chapter typically carries around 10 to 15 marks in the Andhra Pradesh (BSEAP) Class 11 Accountancy board examinations. Common question types include practical problems on preparing a Triple Column Cash Book, simple Cash Book with Bank column, and recording transactions in various subsidiary books followed by ledger posting.
Frequently Asked Questions
Are cash purchases recorded in the Purchases Book?
No, only credit purchases of goods are recorded in the Purchases Book. Cash purchases are recorded directly in the Cash Book.
What is a contra entry and how is it marked in the cash book?
A contra entry occurs when cash is deposited into the bank or withdrawn from the bank for office use. It is marked with the letter 'C' in the Ledger Folio (L.F.) column.
Are assets purchased on credit recorded in the Purchases Book?
No, the Purchases Book records only credit purchases of goods meant for resale, not fixed assets like machinery or furniture.
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