Class 11 Accountancy - MP
Recording of Transactions - II
The chapter 'Recording of Transactions - II' for Class 11 Accountancy under MPBSE focuses on the preparation and maintenance of specialized subsidiary books. Following the initial recording in the journal, businesses use Cash Book, Purchase Book, Sales Book, Purchase Return Book, Sales Return Book, and Journal Proper to handle voluminous transactions efficiently. Mastering this chapter is crucial for board exams as it forms the backbone of ledger posting and trial balance preparation, frequently featuring practical numerical problems on cash books with discount and bank columns.
Start Learning FreeKey Concepts
Subsidiary Books
Special journals used to record similar and repetitive transactions of a specific nature, such as all cash transactions or all credit purchases.
Simple Cash Book
A single-column cash book maintained to record all cash receipts on the debit side and all cash payments on the credit side.
Two-Column Cash Book
A cash book containing two columns on each side, usually Cash and Discount, or Cash and Bank, to record transactions involving bank accounts and discounts.
Contra Entry
An entry that affects both the cash and bank accounts simultaneously on both sides of a two-column cash book, denoted by the letter 'C'.
Purchase and Sales Book
Subsidiary books exclusively used for recording credit purchases and credit sales of goods dealt in by the enterprise, excluding cash purchases or sales.
Important Formulas
Board Exam Info
In the Madhya Pradesh (MPBSE) Class 11 Accountancy board examination, this chapter typically carries around 8 to 12 marks. Questions usually include a mix of objective questions and a major practical numerical problem on preparing a Triple Column or Double Column Cash Book, or recording transactions in Subsidiary Books.
Frequently Asked Questions
What is a contra entry and how is it marked in the cash book?
A contra entry occurs when cash is deposited into the bank or withdrawn from the bank for office use. It affects both cash and bank columns and is marked with a 'C' in the Ledger Folio column.
Are cash purchases and cash sales recorded in Purchase and Sales books?
No, Purchase and Sales books record only credit transactions of goods. Cash purchases and sales are strictly recorded in the Cash Book.
What is the difference between Trade Discount and Cash Discount?
Trade discount is allowed at the time of purchase to reduce the catalog price and is not recorded in the books of accounts. Cash discount is allowed for prompt payment and is explicitly recorded in the Cash Book.
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