Class 11 Accountancy - MAHARASHTRA
Recording of Transactions - II
The chapter 'Recording of Transactions - II' in Class 11 Accountancy for Maharashtra State Board (MSBSHSE) students builds upon basic journal entries by introducing specialized subsidiary books. It focuses on systematic recording of specific business transactions through Cash Book, Purchase Book, Sales Book, Purchase Return Book, Sales Return Book, and Journal Proper. Mastery of this chapter is crucial for board exams as it carries high weightage and tests practical bookkeeping skills, forming the backbone of preparation for final accounts and ledger posting.
Start Learning FreeKey Concepts
Subsidiary Books
Books of original entry where similar and repetitive business transactions are classified and recorded initially, replacing multiple journal entries.
Simple Cash Book
A single-column cash book maintained to record all cash receipts and cash payments chronologically, similar to a cash account.
Two-Column Cash Book
A cash book that contains two columns on both receipt and payment sides, typically Cash and Bank, to record cash and bank transactions simultaneously.
Purchase Book and Sales Book
Subsidiary books used exclusively for recording credit purchases of goods and credit sales of goods respectively. Asset purchases or cash transactions are excluded.
Contra Entry
An entry that affects both the cash and bank columns of a cash book simultaneously on opposite sides, denoted by the letter 'C'.
Important Formulas
Board Exam Info
In the Maharashtra (MSBSHSE) Class 11 Accountancy exam, this chapter typically carries around 10 to 12 marks. Common question types include practical problems asking students to prepare a Two-Column Cash Book with cash and bank columns, or Subsidiary Books along with the Journal Proper based on a given set of business transactions.
Frequently Asked Questions
Are cash purchases recorded in the Purchase Book?
No. Only credit purchases of goods dealt in by the business are recorded in the Purchase Book. Cash purchases are recorded directly in the Cash Book.
What is a contra entry and how is it marked?
A contra entry occurs when a transaction involves both cash and bank accounts, such as cash deposited into the bank or cash withdrawn from the bank for office use. It is recorded on both sides of a Two-Column Cash Book and marked with a 'C' in the Ledger Folio column.
Is trade discount recorded in subsidiary books?
No. Trade discount is deducted from the list price of goods, and only the net invoice amount is recorded in the Purchase or Sales Book.
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