Class 11 Accountancy - RAJASTHAN

Recording of Transactions - II

The chapter 'Recording of Transactions - II' for Class 11 Accountancy under the Rajasthan Board (RBSE) focuses on the preparation of various subsidiary books and the cash book. Building upon journal entries, this chapter explains how businesses handle large volumes of repetitive transactions efficiently by sub-dividing the journal. Students will learn to record transactions in Purchases Book, Sales Book, Purchases Return Book, Sales Return Book, and different types of Cash Books including single column, double column, and petty cash book. Mastering these books is essential for accurate ledger posting and forms a critical foundation for final accounts.

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Key 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, serving simultaneously as a cash account and a journal.

Purchase and Sales Books

Subsidiary books specifically maintained to record only credit purchases of goods and credit sales of goods respectively, excluding cash transactions.

Imprest System of Petty Cash Book

A system where a fixed amount of cash is given to the petty cashier at the beginning of a period to meet small expenses, which is later reimbursed based on actual expenses incurred.

Trade Discount vs Cash Discount

Trade discount is a rebate allowed by the seller on the printed list price at the time of purchase and is not recorded in the books, whereas cash discount is allowed for prompt payment and is explicitly recorded.

Important Formulas

Net Amount = List Price - Trade Discount
Closing Balance of Petty Cash = Opening Advance + Total Reimbursement - Total Petty Expenses
Bank Overdraft = Total Credit Side of Bank Column - Total Debit Side of Bank Column (when credit exceeds debit)

Board Exam Info

In the Rajasthan Board (RBSE) Class 11 Accountancy examinations, this chapter carries significant weight, typically around 8 to 12 marks. Students frequently face practical numerical problems requiring the preparation of a Triple Column Cash Book or specialized subsidiary books along with ledger postings.

Frequently Asked Questions

Are cash transactions recorded in the Purchases or Sales Book?

No, Purchases and Sales Books record only credit transactions relating to goods dealt in by the business. Cash purchases and cash sales are recorded exclusively in the Cash Book.

Where are trade discounts shown in the subsidiary books?

Trade discounts are deducted directly from the list price in the respective subsidiary book, and only the net amount is entered in the final column. They are never recorded in the ledger accounts.

What is a Contra Entry and how is it marked in a Cash Book?

A contra entry occurs when a transaction affects both cash and bank accounts simultaneously, such as cash deposited into the bank or cash withdrawn from the bank for office use. It is marked with the letter 'C' in the Ledger Folio (L.F.) column.

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