Class 11 Accountancy - CBSE
Recording of Transactions - II
The chapter 'Recording of Transactions - II' focuses on the preparation of special purpose subsidiary books and the cash book. Building upon the basic journal entries learned in the previous chapter, students learn how businesses efficiently handle high volumes of identical transactions by dividing the journal into specialized books like Cash Book, Purchase Book, Sales Book, and the Journal Proper. This chapter is crucial for CBSE Class 11 board exams as it forms the bedrock of practical accounting, heavily testing students on cash book balancing, petty cash management, and posting from subsidiary books to ledgers. Mastering this chapter ensures accuracy in the trial balance stage.
Start Learning FreeKey Concepts
Cash Book
A principal book of original entry that records all cash receipts and cash payments, serving simultaneously as a journal and a cash ledger account.
Purchase Book
A subsidiary book specifically maintained to record only credit purchases of goods dealt in by the enterprise; cash purchases are excluded.
Sales Book
A specialized book used exclusively for recording credit sales of merchandise, while cash sales and sales of non-trading assets are recorded elsewhere.
Petty Cash Book
A subsidiary book maintained by a petty cashier to record small recurring expenses like stationery, postage, and refreshments using the imprest system.
Journal Proper
A residual journal used to record miscellaneous transactions that cannot be accommodated in any other specialized subsidiary books, such as opening and adjusting entries.
Important Formulas
Board Exam Info
In CBSE Class 11 Accountancy exams, this chapter typically carries around 8 to 12 marks. Common question types include full-length practical problems requiring the preparation of a Double Column or Triple Column Cash Book with bank and discount columns, preparing subsidiary books from a given set of transactions, and drafting petty cash books under the imprest system.
Frequently Asked Questions
Are cash purchases and cash sales recorded in Purchase and Sales books?
No. Purchase and Sales books exclusively record credit transactions of goods. Cash purchases and cash sales are always recorded directly in the Cash Book.
What is a Contra Entry and where is it recorded?
A contra entry is a transaction that affects both cash and bank accounts simultaneously, such as cash deposited into the bank or cash withdrawn from the bank for office use. It is recorded on both sides of a Double or Triple Column Cash Book and denoted by the letter 'C'.
How does the Imprest System of Petty Cash work?
Under the imprest system, a fixed amount of cash is given to the petty cashier at the beginning of a period. At the end of the period, the petty cashier is reimbursed the exact amount spent, restoring the petty cash balance back to the original fixed amount.
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