Class 11 Accountancy - UP
Recording of Transactions - II
Chapter 'Recording of Transactions - II' in Class 11 Accountancy for Uttar Pradesh (UPMSP) students builds upon the basic journal entries by introducing specialized subsidiary books. This chapter covers the recording of specific business transactions through Cash Book (single, double, and triple column), Purchase Book, Sales Book, Purchase Return Book, Sales Return Book, and the crucial Petty Cash Book. Understanding these books is essential for maintaining organized accounting records in large businesses and forms a major weightage in the UPMSP board exams for practical and numerical problem-solving.
Start Learning FreeKey Concepts
Cash Book
A principal book of original entry used to record all cash receipts and cash payments, acting simultaneously as a cash account and a bank account.
Purchase Book
A subsidiary book specifically maintained to record only credit purchases of goods meant for resale by the business.
Sales Book
A subsidiary book used exclusively for recording credit sales of merchandise or goods that the business deals in.
Petty Cash Book
A subsidiary book maintained by a petty cashier to record small recurring expenses like postage, stationery, and cartage using the imprest system.
Contra Entry
An entry that appears on both sides of a triple column cash book when cash is deposited into the bank or withdrawn from the bank for office use.
Important Formulas
Board Exam Info
In the Uttar Pradesh (UPMSP) Class 11 Accountancy board exams, this chapter typically carries around 10-15 marks. Common question types include long-format numerical problems asking students to prepare a Triple Column Cash Book with discount, cash, and bank columns, or problems on preparing subsidiary books like Purchase and Sales Books from given source documents.
Frequently Asked Questions
What is a contra entry and how is it marked in a Cash Book?
A contra entry affects both the cash and bank columns on opposite sides of a triple column cash book. It is denoted by writing the letter 'C' in the Ledger Folio (L.F.) 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 are recorded in the Cash Book, and cash sales are also recorded in the Cash Book.
What is the Imprest System in a Petty Cash Book?
Under the imprest system, a fixed amount of cash is given to the petty cashier at the beginning of a period. At the end of the period, the spent amount is reimbursed by the head cashier so the balance is restored to the original fixed amount.
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