Class 11 Accountancy - BIHAR

Recording of Transactions - II

The chapter 'Recording of Transactions - II' under the BSEB Class 11 Accountancy syllabus focuses on the maintenance of subsidiary books and the preparation of the Cash Book. Building upon the basic accounting equation and journal entries, this chapter introduces specialized journals such as the Purchase Book, Sales Book, Purchase Return Book, Sales Return Book, and Journal Proper. It also covers different types of cash books, including single-column, double-column, and petty cash books with the imprest system. Mastery of this chapter is vital for board exams as it tests a student's ability to handle bulk business transactions efficiently.

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Key Concepts

Subsidiary Books

Special journals used to record specific types of repetitive transactions, such as credit purchases and credit sales, directly from source documents.

Cash Book

A principal book of original entry that records all cash receipts and cash payments, acting simultaneously as both a journal and a ledger account.

Imprest System of Petty Cash

A system where a fixed amount of cash is given to a petty cashier for small expenses, and the amount spent is reimbursed at the end of the period.

Contra Entry

A transaction that affects both cash and bank accounts simultaneously and is recorded on both sides of a two-column cash book, denoted by the letter 'C'.

Journal Proper

A residual book used to record miscellaneous transactions that cannot be accommodated in any other subsidiary book, such as opening entries and rectifications.

Important Formulas

Closing Balance of Petty Cash = Opening Cash Advance + Total Reimbursement - Total Petty Expenses
Bank Balance as per Cash Book = Opening Balance + Total Cash Deposited/Cheques Received - Total Cheques Issued/Withdrawals - Bank Charges

Board Exam Info

In the Bihar School Examination Board (BSEB) Class 11 Accountancy exams, this chapter typically carries around 10 to 15 marks. Common question types include practical problems on preparing a double-column cash book with bank and cash columns, petty cash book problems using the imprest system, and short-answer conceptual questions regarding the utility of subsidiary books.

Frequently Asked Questions

What transactions are recorded in the Cash Book?

Only transactions involving the actual receipt or payment of cash and cheques are recorded in the Cash Book. Credit transactions are completely excluded.

Why is a Contra Entry passed?

A contra entry is passed when cash is deposited into the bank or withdrawn from the bank for office use, as it involves both cash and bank accounts.

Are trade discounts recorded in subsidiary books?

No, trade discounts are deducted from the list price on the invoice itself, and only the net amount is recorded in the subsidiary books.

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