Class 11 Accountancy - TAMILNADU
Recording of Transactions - II
The chapter 'Recording of Transactions - II' in Class 11 Accountancy under the Tamil Nadu Samacheer Kalvi syllabus focuses on the preparation of various subsidiary books and the ledger. Building upon journal entries, this chapter explains how business transactions of similar nature are systematically grouped into specialized journals such as Purchases Book, Sales Book, Return Inward Book, Return Outward Book, and the Cash Book. It is a crucial chapter for board exams as it forms the backbone of practical accounting, teaching students how businesses manage high volumes of daily transactions efficiently before posting them to the ledger.
Start Learning FreeKey Concepts
Subsidiary Books
Special journals used to record specific types of business transactions of similar nature, such as all credit purchases or credit sales, directly from source documents.
Cash Book
A principal book of original entry that records all cash receipts and cash payments, functioning simultaneously as a cash journal and a cash ledger account.
Purchases and Sales Book
Subsidiary books specifically maintained to record only credit purchases of goods and credit sales of goods, respectively.
Debit Note and Credit Note
Source documents used when goods are returned; a Debit Note is sent to the supplier on returning goods, and a Credit Note is issued to a customer when they return goods.
Ledger Posting
The process of transferring entries from subsidiary books and the journal to respective accounts in the ledger to ascertain the net balance.
Important Formulas
Board Exam Info
This chapter carries significant weight in the Tamil Nadu Samacheer Kalvi Class 11 Accountancy board exams, typically contributing around 10 to 15 marks. Common question types include practical problems asking students to prepare a Triple Column Cash Book, Purchases/Sales Day Book, or ledger postings from given transactions, along with short-answer theory questions on subsidiary books and source documents.
Frequently Asked Questions
Are cash transactions recorded in the Purchases or Sales Book?
No, only credit transactions of goods are recorded in the Purchases and Sales Books. Cash purchases and cash sales are recorded exclusively in the Cash Book.
Does the Cash Book act as both a journal and a ledger?
Yes, the Cash Book serves as a book of original entry (journal) because transactions are recorded in it first, and it also serves as a ledger account because it maintains cash and bank balances directly, eliminating the need for a separate cash account in the ledger.
What is the difference between a Trade Discount and a Cash Discount in subsidiary books?
Trade discount is deducted directly from the list price in the invoice of the subsidiary book and is not recorded in the books of accounts. Cash discount is allowed for prompt payment and is recorded explicitly in the Cash Book.
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