Recording of Transactions – II | Class 11 Accountancy Notes

Introduction

In the previous chapter, you learned that all business transactions are initially recorded in the journal and then posted to ledger accounts. This process is fundamental to the accounting cycle. However, as a business grows and the number of transactions increases, recording each transaction individually in the journal becomes cumbersome and inefficient. To address this, the journal is subdivided into special journals, each designed to record transactions of a similar nature quickly, efficiently, and accurately. These special journals help in streamlining the recording process, reducing errors, and saving time. For example, transactions related to cash are recorded in the cash book, which serves as both a journal and a ledger for cash transactions. This chapter focuses on the recording of transactions related to cash and bank through various types of cash books and petty cash books, explaining their formats, posting procedures, and balancing methods.

📊 Diagram: Figure 1 on page 1; Figure 2 on page 1

🧪 Activity: No specific activity in this section.

🔗 Connection: Leads to the detailed study of different types of cash books starting with the Single Column Cash Book.

Table on page 1 (5×5)

| In chapter 3, you learnt that all th business transactions are first recorded in th journal and then they are posted in the ledge accounts. A small business may be able to recor all its transactions in one book only, i.e., the journa But as the business expands and the number o transactions becomes large, it may becom cumbersome to jour-nalise each transaction. Fo quick, efficient and accurate recording of busines transactions, Journal is sub-divided into specia journals. Many of the business transactions ar repetitive in nature. They can be easily recorded i LEARNING OBJECTIVES special journals, each meant for recording all th After studying this transactions of a similar nature. For example, a chapter, you will be able cash transactions may be recorded in one book, all credi to : sales transactions in another book and all credi • state the need for purchases transactions in yet another book and so on special purpose books; These special journals are also called daybooks o • record the transactions subsidiary books. Transactions that cannot be recorde in cash book and post in any special journal are recorded in journal called th them in the ledger; Journal Proper. Special journals prove economical an • prepare the petty cash book; make division of labour possible in accounting work. I this chapter we will discuss the following special purpos • record the transactions in the special purpose books: books; • Cash Book • post the entries in the • Purchases Book special purpose book • Purchases Return (Return Outwards) Book and to the ledger; | | | | |

| | LEARNING OBJECTIVES After studying this chapter, you will be able to : • state the need for special purpose books; • record the transactions in cash book and post them in the ledger; • prepare the petty cash book; • record the transactions in the special purpose books; • post the entries in the special purpose book and to the ledger; | | | | | | • balance the ledger accounts. | | | |

Table on page 10 (12×10)

| Purchases Account Receipts Payment Date Particulars J.F. Amount Date Particulars J.F. Amount 2017 Sept.04 Bank 12,000 Sept. 17 Cash 17,400 Sales Account Receipts Payment Date Particulars J.F. Amount Date Particulars J.F. Amount 2017 Sept. 08 Cash 6,000 Sept. 16 Bank 4,500 Machinery Account Receipts Payment Date Particulars J.F. Amount Date Particulars J.F. Amount 2017 Sept. 13 Bank 5,500 Stationery Account Receipts Payment Date Particulars J.F. Amount Date Particulars J.F. Amount 2017 Sept.20 Bank 1,100 | | | | | | | | | s |

| | Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount | | | | 2017 Sept.04 Sept. 17 | Bank Cash | | 12,000 17,400 | | | | | |

| | Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount | | | | | | | | 2017 Sept. 08 Sept. 16 | Cash Bank | | 6,000 4,500 | |

| | Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount | | | | 2017 Sept. 13 | Bank | | 5,500 | | | | | |

| | Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount | | | | 2017 Sept.20 | Bank | | 1,100 | | | | | |