Class 11 Accountancy - ODISHA
Recording of Transactions - II
The chapter 'Recording of Transactions - II' for Class 11 Odisha (BSE) students builds upon the foundation of basic journal entries by introducing specialized subsidiary books. Instead of recording every single transaction in the general journal, businesses use Cash Book, Purchase Book, Sales Book, Purchase Return Book, Sales Return Book, and Journal Proper. This chapter is crucial for board exams as it tests your ability to systematically classify and record transactions efficiently, which is a core practical skill in accounting. Mastering subsidiary books helps in managing large volumes of business data and forms the basis for ledger posting.
Start Learning FreeKey Concepts
Subsidiary Books
Special journals used to record transactions of similar nature in one place before posting them to the ledger, saving time and effort.
Simple Cash Book
A single-column cash book used to record all cash receipts on the debit side and all cash payments on the credit side.
Double Column Cash Book
A cash book that contains two columns for amounts on each side, typically Cash and Bank, to record transactions involving bank accounts as well.
Purchase Book
A subsidiary book specifically maintained to record only credit purchases of goods meant for resale.
Contra Entry
An entry that affects both the cash and bank columns simultaneously on both sides of a double-column cash book.
Important Formulas
Board Exam Info
In the Odisha (BSE) Class 11 Accountancy board examinations, this chapter typically carries around 10 to 15 marks. Common question types include practical problems on preparation of a Double Column Cash Book with cash and bank columns, and recording transactions in Purchase and Sales Books along with their returns.
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 recorded directly in the Cash Book.
What is a contra entry and when does it occur?
A contra entry occurs when cash is deposited into the bank or cash is withdrawn from the bank for office use, affecting both cash and bank columns.
Are purchase of assets on credit entered in the Purchase Book?
No, the Purchase Book records only credit purchase of goods dealt in by the business. Asset purchases on credit go into the Journal Proper.
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