Class 11 Accountancy - KERALA
Recording of Transactions - II
The chapter 'Recording of Transactions - II' in Class 11 Accountancy under the Kerala SCERT syllabus focuses on the preparation of various subsidiary books and the cash book. Building on the basic accounting equation and journal entries, this chapter explains how businesses handle large volumes of repetitive transactions efficiently through specialized books such as Purchases Book, Sales Book, Return Inward Book, Return Outward Book, and the Cash Book (including single, double, and triple column cash books). Mastering this chapter is crucial for board exams as it forms the backbone of practical accounting problems and ledger posting.
Start Learning FreeKey Concepts
Subsidiary Books
Special journals used to record repetitive transactions of similar nature, 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, which also functions as a ledger account for cash and bank balances.
Purchases and Sales Return Books
Books used to record goods returned by the business to suppliers (Return Outward) and goods returned by customers to the business (Return Inward).
Journal Proper
A residual journal used to record miscellaneous transactions that do not fit into any other specific subsidiary book, such as opening entries and rectifying entries.
Contra Entry
A transaction involving both cash and bank that is recorded on both sides of a double or triple column cash book, indicated by the letter 'C'.
Important Formulas
Board Exam Info
In the Kerala SCERT Class 11 Accountancy examination, this chapter typically carries around 8 to 12 marks. Common question types include practical problems on preparing a Triple Column Cash Book or various Subsidiary Books, along with short-answer questions defining terms like Contra Entry and Trade Discount.
Frequently Asked Questions
Are cash purchases and cash sales recorded in the Purchases Book and Sales Book?
No. Only credit purchases of goods are recorded in the Purchases Book, and only credit sales of goods are recorded in the Sales Book. Cash transactions are recorded directly in the Cash Book.
What is the difference between a Trade Discount and a Cash Discount?
Trade discount is given by the supplier to the buyer at the time of purchase to reduce the catalog price and is not recorded in the books. Cash discount is given for prompt payment and is explicitly recorded in the Cash Book.
When is a Contra Entry recorded in a Cash Book?
A contra entry is recorded when cash is deposited into the bank or when cash is withdrawn from the bank for office use, as both accounts (Cash and Bank) are affected within the cash book itself.
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