Class 11 Accountancy - GUJARAT
Recording of Transactions - II
The chapter 'Recording of Transactions - II' in GSEB Class 11 Accountancy focuses on the preparation of subsidiary books and the cash book. Building on the basic accounting equation and journal entries, this chapter explains how businesses handle large volumes of transactions by sub-dividing the journal into specialized books like Purchase Book, Sales Book, Return Inward/Outward Books, and various types of Cash Books (Single, Two-column, and Three-column). Mastering this chapter is essential for board exams as it forms the backbone of practical bookkeeping and directly tests your ability to systematically classify financial data before posting to ledger accounts.
Start Learning FreeKey Concepts
Subsidiary Books
Specialized journals used to record similar types of transactions at one place, such as purchases of goods on credit or cash receipts.
Cash Book
A principal book of original entry that records all cash receipts and cash payments, serving the dual purpose of a cash journal and a cash ledger account.
Purchase Book and Sales Book
Registers specifically maintained to record only credit purchases and credit sales of goods dealt in by the business.
Trade Discount vs Cash Discount
Trade discount is a reduction in catalog price granted by the seller (not recorded in books), whereas cash discount is allowed for prompt payment (recorded in the books).
Imprest System of Petty Cash Book
A system where a fixed amount of cash is given to a petty cashier at the beginning of a period to meet small expenses, which is later reimbursed based on actual expenses.
Important Formulas
Board Exam Info
In the Gujarat Secondary and Education Board (GSEB) Class 11 Accountancy examinations, this chapter typically carries around 8 to 12 marks. Questions usually include practical long problems on preparing a Triple Column Cash Book or specialized subsidiary books along with short theoretical questions on discounts and imprest cash systems.
Frequently Asked Questions
Are cash purchases recorded in the Purchase Book?
No. Only credit purchases of goods are recorded in the Purchase Book. Cash purchases are always recorded directly in the Cash Book.
What is a contra entry in a Triple Column Cash Book?
A contra entry occurs when a transaction involves both cash and bank accounts simultaneously, such as cash deposited into the bank or cash withdrawn from the bank for office use. It is denoted by the letter 'C' in the Ledger Folio column.
Is trade discount shown separately in the journal or subsidiary books?
No, trade discount is deducted directly from the list price in the invoice, and only the net amount is recorded in the books of accounts.
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