Class 11 Accountancy NCERT Solutions for Chapter 4 2021: Download PDF

ncert solutions for class 11 accountancy chapter 4

NCERT Solutions for Class 11 Accountancy Chapter 4: Deals with the Preparation, posting, and recording business transactions in various accounts such as the cashbook, ledger account, general accounting, and so on. The recording is an important accounting component in accountancy that aids in the maintenance of store books with financial information. To get more insight into the NCERT Solutions for class 11 Accountancy Chapter 4

It’s a series of stages that start with analyzing and classifying each transaction depending on its nature, then recording transactions in a journal as they happen, and finally posting to specific ledger accounts.

Table of Contents

NCERT Solutions for Class 11 Accountancy Chapter 4

NCERT Solutions for Class 11 Accountancy Part 1 Chapter 4

 

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NCERT Solutions For Class 11 Accountancy Chapter 4: Overview

What is the significance of transaction 2 recording?

Business transaction recording is regarded as one of the greatest business practises since it provides a transparent status of the company as well as its management in making decisions based on credible sources. However, in order for the recorded transactions to be error-free, the recording must be done precisely and efficiently. The transactions are recorded in multiple books in a double-entry system and then tallied to guarantee the transactions are error-free.

Our NCERT solutions for class 11th accountancy are completely accurate and cover all concepts and exercise questions. Our skilled teachers have put together the solutions to make learning as straightforward as possible. Students will be able to readily access these materials and participate in double clearing sessions on an individual basis, or they will be able to send their questions to us in the comment box and we will respond to them.

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Access NCERT Solutions For Class 11 Accountancy Chapter 4

1. Briefly state how the cash book is both journal and a ledger?

Transactions are recorded directly from source documents in the Cash Book, so there is no need to record transactions in the Journal book. Further, on the basis of the cash transactions recorded in the Cash Book, cash and bank balances can be determined, and so there is no need to prepare cash account (which is a part of ledger) separately. Thus, the Cash Book serves the purpose of both Journal as well as ledger.

2. What is the purpose of contra entry?

Contra entry represents deposits or withdrawals of cash from bank or vice versa. The purpose of contra entry is to indicate the
transactions that effect both cash and bank balances. This entry does not affect the financial positions of a business. A contra entry
is recorded in both sides of a two column Cash Book and is denoted by ‘C’ in the ledger folio column.

3. What are special purpose books?

Business transactions are large in number and difficult to record; so, journal is sub-divided for quick, efficient and accurate recording
of the business transactions. Special purpose books like, sales book and purchases book are maintained for those transactions that
are routine and repetitive in nature. Recording through these books is economical and enables division of work among accountants.

4. What is petty cash book? How it is prepared?

Petty Cash Book is used for recording payment of petty expenses, which are of smaller denominations like postage, stationery,
conveyance, refreshment, etc. Person who maintains petty cash book is known as petty cashier and these small expenses are termed as petty expenses. It is prepared by two methods:
1. Ordinary system: In this case, a fixed sum of money is paid to petty cashier for the payment of petty expenses and after spending the
whole amount, the account is submitted by the petty cashier to the main cashier.
2. Imprest system: In this case, a fixed sum of the money is given to the petty cashier in the beginning of a period and at the end of the
period the amount spent by him is reimbursed, so that he has a fixed amount in the beginning of every new period.

5. Explain the meaning of posting of journal entries?

Posting is the process of transferring the business transactions from Journal to ledgers.
Every transaction is first recorded in the Journal and subsequently transferred to their respective accounts.

6. Define the purpose of maintaining subsidiary journal.

The process of accounting starts from identification of financial and non-financial events. Financial events are first recorded in a Journal. A small business has lesser number of transactions and thereby it may be possible to record these transactions through
Journal entry. However, on the contrary, as the business grows, there will be voluminous number of transactions and the firm may experience difficulty, thereby it becomes tedious to record through Journal entry. Thus, in order to save time and effort, it is recommended to sub-divide Journal. Sub-division of Journal provides scope for division of work. This leads to the improvement of efficiency and effectiveness and infuses higher degree of accountability to the accountants for the specific subsidiary Journal assigned to them. The purposes of maintaining subsidiary Journal are given below.
1. It saves time and efforts in recording.
2. It enables division of work, leading to an enhancement of efficiency and effectiveness, as particular accountant takes care of particular books.
3. It also makes each accountant more responsible and accountable for the books assigned to them.
4. It records routine and repetitive transactions at one place, which leads to easy accessibility of information and hassle-free communication.

Basis of Comparison

Return Inwards

Return Outwards

Meaning

Goods returned to business by their customers

Goods purchased by business are returned to the suppliers.

Balance

It has debit balance.

It has credit balance.

Treatment

Deducted from Sales in the Trading Account.

Deducted from Purchases in the Trading Account.

Issued

Credit note is prepared by the seller.

Debit note is prepared by the buyer.

Reduction

Reduces the payment from the Debtors.

Reduces the payment made to the Creditors.

Term

It is also known as Sales Returns.

It is also known as Purchases Returns.

7. What do you understand by ledger folio?

It refers to a column in the journal where page number of the ledger book on which the relevant account appears is recorded is called as Ledger Folio, also abbreviated as L.F

8. What is difference between trade discount and cash discount?

Basis of Comparison

Trade Discount

Cash Discount

Meaning

Discount offered on purchase of goods.

Discount for making payment.

Recording in books

Not recorded in accounting books

Recorded in cash book either on debit or credit side depending on discount provided or received.

Purpose

Encourage increase in sale.

Encourage on time payment.

9. Write the process of preparing ledger from a journal.

The following process describes the preparation of ledger from journal:

Locate the account to be debited in the ledger as entered in the journal

Enter date of transaction into date column of debit side.

Mention the account from which it is debited in journal, is written in the particulars column.

Enter the page number of the journal in the J.F. column. The corresponding page number of the ledger account is written in the L.F. column of the journal.

Enter amount in the amount column in the debit side.

For credit side follow the same procedure for crediting the entry.

10. What do you understand by Imprest amount in petty cash book?

Imprest amount is a definite sum of money that is provided to petty cashier for a certain period which can be a week or month. Reimbursement is done after the end of the period in order to start a new cycle.

Long Answers for NCERT Accountancy Solutions Class 11 Chapter 4

1. Explain the need for drawing up the special purpose books.

Special purpose books are beneficial in:

  • Accuracy: As each journal is managed by a different accountant having specific expertise, it improves accuracy and reduces defects.
  • Efficiency: Increases efficiency by dividing workload
  • Concise Descriptions: The journal describes the purpose of recording. For example a record in the purchase journal, will be understood by default that it is a purchase related transaction.
  • Minimal Posting: Reduces the volume of posting as totals can be done periodically.
  • Fraud Prevention: As recording of different journals are assigned to different individual, fraud prevention is prevented.

Faster process: As multiple books are handled by multiple accountants, the recording work moves faster.

2. What is cash book? Explain the types of cash book.

A cash book is also known as book of original entry in which all transactions related to cash receipts and cash payments are recorded. All cash deposits and withdrawals are recorded in a sequential order. Cash receipts are recorded in cash column and bank deposits are recorded in bank column, and all cash deposits are added in cash column, cheque payment get recorded in credit side under bank column. It serves as a principal book.

Types of cash book are:

  1. Single Column Cash Book: In this type of cash book all recordings related to cash takes place, it is useful for organisations that maintain only cash transactions. It contains records of cash receipts and cash payments.
  2. Double Column Cash Book: The two column cash book is also referred to as the double column cash book. It contains two money columns on both sides (i.e. debit and credit), one side is for recording cash transactions while the other is for recording bank transactions.

Cash transactions are recorded in cash column and thus functions as a cash account whereas bank column records all bank related transactions such as payments made by cheques and functions as a bank account. Some organisations prefer the double column cash book as it contains both cash and bank columns and thus it is easy to maintain instead of maintaining two separate ledgers.

Cash Book

Dr.

               

Cr.

Date

Particulars

L.F.

Cash

Bank

Date

Particulars

L.F.

Cash

Bank

 

Cash

(C)

 

 

Bank

(C)

 
                   
                   
                   
  1. Triple Column Cash Book: Triple column cashbook is a type of cash book that has provisions for three columns which are cash, bank and discount. It is used by large firms that frequently deal with cash and bank transactions as well as which allow cash discounts. The procedure of recording data is similar to double column cash book. The cash and bank columns are periodically totalled and balanced, while the discount column is only totalled. Discount allowed is recorded on the debit while discount received from suppliers is recorded on credit side.
  2. Petty Cash Book: A cash book that records all those expenses that are small and hold little value is called a petty cash book. The transactions related to stamps, stationery, postage, daily wages etc. are recorded in petty cash book.
  3. What is contra entry? How can you deal this entry while preparing double column cash book?

An entry that is recorded to reverse an entry on the opposite side of an account is called contra entry. For example when a debit entry gets recorded in an account, a contra entry will be posted in the credit side. Similarly a contra entry will be posted in debit side if an entry gets recorded in credit side.

Some transactions that can lead to contra entry are provided below.

  • Opening of a bank account
  • Depositing cash into bank
  • Withdrawal from bank

These transactions are recorded in a double column Cash Book as shown below.

Cash Book

Dr.

               

Cr.

Date

Particulars

L.F.

Cash

Bank

Date

Particulars

L.F.

Cash

Bank

 

Cash

(C)

     

Bank

(C)

   
                   
                   
                   

3. What is petty cash book? Write the advantages of petty cash book?

Recording of repetitive expenses in cash book will burden the cashier. Hence, a separate book is created where petty expenses are recorded. Examples of such type of expenses are: Stationery, Refreshment, Postage, and Conveyance. Petty cash book is maintained by Petty cashier.

Preparation is mostly done by Imprest System as it is more convenient. In this system, petty cashier is given a pre-defined sum of the money for a period. At the end of the period, the amount spent by him is reimbursed by cashier so that the cashier has the same amount again at the start of the period.

The Performa of Petty Cash Book is given below.

Petty Cash Book

Dr.

Cr.

Amount Received

Date

Particulars

Voucher No.

Amount Paid

Analysis of Payments

Postage

Stationery

Conveyance

Telephone and

 Telegram

Miscellaneous

Remarks

                     
                     
                     
                     

Advantages of Petty Cash Book:

  1. Division of labour: By delegating the work to a petty cashier the cashier is able to look into other aspects of a firm.
  2. Avoid bulky cash books: Recording repetitive transactions in a cash book makes it bulky, petty cash makes it easy and avoids making cash book bulky.
  3. Less error prone: Head cashier will be making periodic audits on the petty cash book, so it will be error free.
  4. Ease of posting: Only the petty expenses are recorded periodically which makes posting easier.
  5. Describe the advantages of sub-dividing the Journal.

Sub dividing of Journal has following advantages:

Accountability: As each accounts are handled by individual accountants, it makes them more accountable and ensure that accounts are properly maintained.

Accuracy: Each accountant will be specialized in the work assigned to them and hence less chances of errors.

Division of Labour: As accounts are maintained by separate accountants it ensures faster recording and parallel recording of transactions.

Economical: As division of labour brings in specialization, the process becomes efficient and there by becomes economical.

Ease of Audit and analysis: The analysis of transactions which are similar in nature becomes easier.

Productivity: As the accountants gain expertise in handling specific account, in increases their productivity.

  1. What do you understand by balancing of account?

The accounts in the ledger are balanced at periodic intervals of daily, weekly, fortnightly, monthly, quarterly or any other pre-defined periodic intervals. The goal of balancing is to determine the net position of each amount. The following steps are involved in the balance of the accounts.

The debit and credit side are totalled.

The total on the side which is higher is written on the corresponding side.

The difference between both the sides is recorded on the shorter side. This makes the total on both the sides equal.

In case the debit side exceeds the credit side, the difference is written on the credit side. This is called Debit Balance.

If the credit side exceeds the debit sided, the difference is written on the debit side. This is called Credit Balance.

The words balance c/d are written against the amount of the difference between the two sides. Balance c/d stands for balance carried down.

The amount of balance is brought down (b/d) in the next accounting period. It is denoted with Balance b/d. This indicates that it is a continuing account, till finally settled or closed. Here Balance b/d stands for Balance Brought Down.

The accounts of expenses losses and gains/revenues are not balanced. Instead, these are transferred to trading and profit and loss account.

Numerical Questions for NCERT Accountancy Solutions Class 11 Chapter 4

1. Enter the following transactions in a simple cash book for December 2016:

 

 

 

01

Cash in hand

12,000

05

Cash received from Bhanu

4,000

07

Rent Paid

2,000

10

Purchased goods Murari for cash

6,000

15

Sold goods for cash

9,000

18

Purchase stationery

300

22

Cash paid to Rahul on account

2,000

28

Paid salary

1,000

30

Paid rent

500

The solution for this question can be represented in a cash book format as follows:

Cash book

Dr.

Cr.

Date

Receipts

L.F.

Amount

Date

Payments

L.F.

Amount

2016

     

2016

     

01 Dec

Balance b/d

 

12,000

07 Dec

Rent

 

2,000

05 Dec

Bhanu

 

4,000

10 Dec

Purchases

 

6,000

15 Dec

Sales

 

9,000

18 Dec

Stationery

 

300

       

22 Dec

Rahul

 

2,000

       

28 Dec

Salaries

 

1,000

       

30 Dec

Rent

 

500

       

31 Dec

Balance c/d

 

13,200

     

25,000

     

25,000

               

2. Enter the following transaction in Simple cash book for December 2018:

2018

   

01

Cash in hand

7,750

06

Paid to Sonu

45

08

Purchased goods

600

15

Received cash from Parkash

960

20

Cash sales

500

25

Paid to D. Kumar

1,200

30

Paid rent

600

     

The solution for this question is as follows:

Cash book

Dr.

Cr.

Date

Receipts

L.F.

Amount

Date

Payments

L.F.

Amount

2018

     

2018

     

01 Dec

Balance b/d

 

7,750

06 Dec

Sonu

 

45

15 Dec

Parkash

 

960

08 Dec

Purchases

 

600

20 Dec

Sales

 

500

25 Dec

S.Kumar

 

1,200

       

30 Dec

Rent

 

600

       

31 Dec

Balance c/d

 

7,760

     

9,210

     

9,210

               

3. Record the following transaction in simple cash book for November 2017:

 

 

 

01

Cash in hand

12,500

 

04

Cash paid to Hari

600

 

07

Purchased goods

800

 

12

Cash received from Amit

1,960

 

16

Sold goods for cash

800

 

20

Paid to Manish

590

 

25

Paid cartage

100

 

30

Paid salary

1,000

 
       
       
       
       
       
       
       

The solution for this question is as follows:

Cash book

Dr.

Cr.

Date

Receipts

L.F.

Amount

Date

Payments

L.F.

Amount

2017

     

2017

     

01 Nov

Balance b/d

 

12,500

04 Nov

Hari

 

600

12 Nov

Amit

 

1,960

07 Nov

 

Purchases

800

16 Nov

Sales

 

800

20 Nov

Manish

 

590

       

25 Nov

Cartage

 

100

       

30 Nov

Salaries

 

1,000

       

30 Nov

Balance c/d

 

12,170

     

15,260

     

15,260

               

4. prepare a double column cash book with the help of following information for December 2016:

 

 

01

Started business with cash

1,20,000

03

Cash paid into bank

50,000

05

Purchased goods from Sushmita

20,000

06

Sold goods to Dinesh and received a cheque

20,000

10

Paid to Smita cash

20,000

14

Cheque received on December 06, 2016 deposited into bank

 

18

Sold goods to Rani

12,000

20

Cartage paid in cash

500

22

Received cash from Rani

12,000

27

Commission received

5,000

30

Drew cash for personal use

2,000

The solution for the question is given below:

Cash book

Dr.

Cr.

Date

Receipts

L.F.

Cash

Bank

Date

Payments

L.F.

Cash

Bank

2016

       

2016

       

01 Dec

Capital

 

1,20,000

 

03 Dec

Bank

C

50,000

 

03 Dec

Cash

C

 

50,000

10 Dec

Sushmita

 

20,000

 

06 Dec

Dinesh

 

20,000

 

14 Dec

Bank

C

20,000

 

14 Dec

Cash

C

 

20,000

20 Dec

Cartage

 

500

 

22 Dec

Rani

 

12,000

 

30 Dec

Drawings

C

2,000

 

27 Dec

Commission

 

5,000

 

31 Dec

Balance c/d

 

64,500

70,000

     

1,57,000

70,000

     

1,57,000

70,000

                   

5. Record the following transactions in a bank column cash book for December 2016:

 

 

01

Started business with cash

80,000

04

Deposited in bank

50,000

10

Received cash from Rahul

1,000

15

Bought goods for cash

8,000

22

Bought goods by cheque

10,000

25

Paid to Shyam by cash

20,000

30

Drew from Bank for office use

2,000

31

Rent paid by cheque

1,000

The transactions can be represented in the form of a bank column cash book as follows:

Cash book

Dr.

Cr.

Date

Receipts

L.F.

Cash

Bank

Date

Payments

L.F.

Cash

Bank

2016

       

2016

       

01 Dec

Capital

 

80,000

 

04 Dec

Bank

C

 

50,000

04 Dec

Cash

C

 

50,000

15 Dec

Purchases

 

8,000

 

10 Dec

Rahul

 

1,000

 

22 Dec

Purchases

   

10,000

30 Dec

Bank

C

2,000

 

25 Dec

Ram

 

20,000

 
         

30 Dec

Cash

C

 

2,000

         

31 Dec

Rent

   

1,000

         

31 Dec

Balance c/d

 

5,000

37,000

     

83,000

50,000

     

83,000

50,000

                   

6. Prepare double column cash book from the following information for September 2017:

 

 

01

Cash in hand

7,500

 

Bank overdraft

3,500

03

Paid wages

200

05

Cash sales

7,000

10

Cash deposited into bank

4,000

15

Goods purchased and paid by cheque

2,000

20

Paid rent

500

25

Drew from bank for personal use

400

30

Salary paid

1,000

The solution for this question is as follows:

Cash Book

Dr.

Cr.

Date

Receipts

L.F.

Cash

Bank

Date

Payments

L.F.

Cash

Bank

2017

       

2017

       

01 Sep

Balance b/d

 

7,500

 

01 Sep

Balance b/d (Overdraft)

   

3,500

05 Sep

Sales

 

7,000

 

03 Sep

Wages

 

200

 

10 Sep

Cash

C

 

4,000

10 Sep

Bank

C

4,000

 
         

15 Sep

Purchases

   

2,000

         

20 Sep

Rent

 

500

 
         

25 Sep

Drawings

   

400

         

30 Sep

Salaries

 

1,000

 

30 Sep

Balance c/d (Overdraft)

   

1,900

30 Sep

Balance c/d

 

8,800

 
     

14,500

5,900

     

14,500

5,900

                   

7. Enter the following transactions in double column cash book of M/s Ambica Traders for November 2017:

 

 

01

Commenced business with cash

50,000

03

Opened bank account with ICICI

30,000

05

Purchased goods for cash

10,000

10

Purchased office machine for cash

5,000

15

Sales goods on credit from Rohan and received cheque

7,000

18

Cash sales

8,000

20

Rohan’s cheque deposited into bank

 

22

Paid cartage by cheque

500

25

Cash withdrawn for personal use

2,000

30

Paid rent by cheque

1,000

The solution for this question is as follows:

M/s. Ambica Traders

Cash Book

Dr.

Cr.

Date

Receipts

L.F.

Cash

Bank

Date

Payments

L.F.

Cash

Bank

2017

       

2017

       

01 Nov

Capital

 

50,000

 

03 Nov

Bank

C

30,000

 

03 Nov

Cash

C

 

30,000

05 Nov

Purchases

 

10,000

 

15 Nov

Rohan

 

7,000

 

10 Nov

Office Machine

 

5,000

 

18 Nov

Sales

 

8,000

 

20 Nov

Bank

C

7,000

 

20 Nov

Cash

C

 

7,000

22 Nov

Cartage

   

500

         

25 Nov

Drawings

 

2,000

 
         

30 Nov

Rent

   

1,000

         

30 Nov

Balance c/d

 

11,000

35,500

     

65,000

37,000

     

65,000

37,000

                   

8. Enter the following transaction in a double column cash book of M/s Mohit Traders for January 2017:

 

 

01

Cash in hand

3,500

 

Bank overdraft

2,300

03

Goods purchased for cash

1,200

05

Paid wages

200

10

Cash sales

8,000

15

Deposited into bank

6,000

22

Sold goods for cheque which was deposited into bank same day

2,000

25

Paid rent by cheque

1,200

28

Drew from bank for personal use

1,000

31

Bought goods by cheque

1,000

The solution for this question in the form of a double column cash book is as follows:

M/s. Mohit Traders

Cash Book

Dr.

Cr.

Date

Receipts

L.F.

Cash

Bank

Date

Payments

L.F.

Cash

Bank

2017

       

2017

       

01 Jan

Balance b/d

 

3,500

 

01 Jan

Balance b/d (overdraft)

   

2,300

10 Jan

Sales

 

8,000

 

03 Jan

Purchases

 

1,200

 

15 Jan

Cash

C

 

6,000

05 Jan

Wages

 

200

 

22 Jan

Sales

   

2,000

15 Jan

Bank

C

6,000

 
         

25 Jan

Rent

   

1,200

         

28 Jan

Drawings

   

1,000

         

31 Jan

Purchases

   

1,000

         

31 Jan

Balance c/d

 

4,100

2,500

     

11,500

8,000

     

11,500

8,000

                   

9. Prepare double column cash book from the following transactions for the year December 2017:

 

 

01

Cash in hand

17,500

 

Cash at bank

5,000

03

Purchased goods for cash

3,000

05

Received cheque from Jasmeet

10,000

08

Sold goods for cash

7,000

10

Jasmeet’s cheque deposited into bank

 

12

Purchased goods and paid by cheque

20,000

15

Paid establishment expenses through bank

1,000

18

Cash sales

7,000

20

Deposited into bank

10,000

24

Paid trade expenses

500

27

Received commission by cheque

6,000

29

Paid Rent

2,000

30

Withdrew cash for personal use

1,200

31

Salary paid

6,000

The solution is represented in the following table as follows:

 

Dr.

Cr.

Date

Receipts

L.F.

Cash

Bank

Date

Payments

L.F.

Cash

Bank

2017

       

2017

       

01 Dec

Balance b/d

 

17,500

5,000

03 Dec

Purchases

 

3,000

 

05 Dec

Jasmeet

 

10,000

 

10 Dec

Bank

C

10,000

 

08 Dec

Sales

 

7,000

 

12 Dec

Purchases

   

20,000

10 Dec

Cash

C

 

10,000

15 Dec

Establishment Expenses

   

1,000

18 Dec

Sales

 

7,000

 

20 Dec

Bank

C

10,000

 

20 Dec

Cash

C

 

10,000

24 Dec

Trade Expenses

 

500

 

27 Dec

Commission

   

6,000

29 Dec

Rent

 

2,000

 
         

30 Dec

Drawings

 

1,200

 
         

31 Dec

Salaries

 

6,000

 
         

31 Dec

Balance c/d

 

8,800

10,000

     

41,500

31,000

     

41,500

31,000

                   

For the month of December 2017, the cash in hand is ₹.8, 800 and the cash in bank is 10,000.

  1. M/s Ruchi trader started their cash book with the following balances on July 2017: cash in hand ₹ 1,354 and balance in bank current account ₹ 7,560. He had the following transaction in the month of July, 2017:

 

 

03

Cash sales

2,300

05

Purchased goods, paid by cheque

6,000

08

Cash sales

10,000

12

Paid trade expenses

700

15

Sales goods, received cheque (deposited same day)

20,000

18

Purchased motor car paid by cheque

15,000

20

Cheque received from Manisha (deposited same day)

10,000

22

Cash Sales

7,000

25

Manisha’s cheque returned dishonoured

 

28

Paid Rent

2,000

29

Paid telephone expenses by cheque

500

31

Cash withdrawn for personal use

2,000

 

Prepare bank column cash book

The transactions can be represented in a bank column cash book as shown below:

Books of M/s. Ruchi Trader

Cash Book

Dr.

               

Cr.

Date

Particulars

L.F.

Cash

 ₹

Bank

Date

Particulars

L.F.

Cash

 ₹

Bank

2017

       

2017

       

Jul.01

Balance b/d

 

1,354

7,560

Jul.05

Purchases

   

6,000

Jul.03

Sales

 

2,300

 

Jul.12

Trade Expenses

 

700

 

Jul.08

Sales

 

10,000

 

Jul.18

Motor Car

   

15,000

Jul.15

Sales

   

20,000

Jul.25

Manisha (Dishonour)

   

10,000

Jul.20

Manisha

   

10,000

Jul.28

Rent

 

2,000

 

Jul.22

Sales

 

7,000

 

Jul.29

Telephone Expenses

   

500

         

Jul.31

Drawings

 

2,000

 
         

Jul.31

Balance c/d

 

15,954

6,060

                   
     

20,654

37,560

     

20,654

37,560

                   

For month of July Cash in Hand is ₹. 15,954 and the Cash in Bank is ₹ 6,060.

  1. Record the following transactions during the week ending June. 30, 2017 with a weekly imprest ₹ 500

 

 

 

24

Stationery

100

25

Bus fare

12

25

Cartage

40

26

Taxi fare

80

27

Wages to casual labour

90

29

Postage

80

     

The petty cash book can be created with the following transactions as shown below.

Petty Cash Book

Amount

Received

Date

Particulars

Voucher

No.

Amount

Paid

Analysis of Payments

Remarks

2017

Jun

 

 

Postage

Telephone

& Telegram

Conveyance

Stationery

Misc.

 

2017

                 

500

24 Jun

Cash Received

               
 

24 Jun

Stationery

 

100

     

100

   
 

25 Jun

Bus Fare

 

12

   

12

     
 

25 Jun

Cartage

 

40

   

40

     
 

26 Jun

Taxi Fare

 

80

   

80

     
 

27 Jun

Wages

 

90

       

90

 
 

27 Jun

Postage

 

80

80

         
       

402

80

 

132

100

90

 
 

27 Jun

Balance c/d

 

98

           

500

     

500

           

98

28 Jun

Balance b/d

               

402

28 Jun

Cash received

               
  1. Prepare petty cash book from the following transactions. The imprest amount is ₹ 2,000.

July

2017

 

01

Paid cartage

50

02

STD charges

40

02

Bus fare

20

03

Postage

30

04

Refreshment for employees

80

06

Courier charges

30

08

Refreshment of customer

50

10

Cartage

35

15

Taxi fare to manager

70

18

Stationery

65

20

Bus fare

10

22

Fax charges

30

25

Telegrams charges

35

27

Postage stamps

200

29

Repair on furniture

105

30

Laundry expenses

115

31

Miscellaneous expenses

100

The petty cash book can be created from the following transactions as shown below

Petty Cash Book

Amount

Received

Date

Particulars

Voucher

No.

Amount

Paid

Analysis of Payments

Remarks

2017

July

 

 

Postage

Telephone

& Telegram

Conveyance

Stationery

Misc.

 

2017

                 

2000

01 Jul

Cash received

               
 

01 Jul

Cartage

 

50

   

50

     
 

02 Jul

STD Charges

 

40

 

40

       
 

02 Jul

Bus fare

 

20

   

20

     
 

03 Jul

Postage

 

30

30

         
 

04 Jul

Refreshments

 

80

       

80

 
 

06 Jul

Courier Charges

 

30

30

         
 

08 Jul

Refreshments

 

50

       

50

 
 

10 Jul

Cartage

 

35

   

35

     
 

15 Jul

Taxi fare

 

70

   

70

     
 

18 Jul

Staionery

 

65

     

65

   
 

20 Jul

Bus fare

 

10

   

10

     
 

22 Jul

Fax

 

30

 

30

       
 

25 Jul

Telegram Charges

 

35

 

35

       
 

27 Jul

Postage

 

200

200

         
 

29 Jul

Furniture Repair

 

105

       

105

 
 

30 Jul

Laundry

 

115

       

115

 
 

31 Jul

Misc

 

100

           

Access Other NCERT Solutions for Class 11 Accountancy Chapter 4

You can download the PDF of NCERT Solutions Class 11 Accountancy for Chapter 4 an other chapters: 

Chapter 1 Introduction to Accounting 

Chapter 2 Theory Base of Accounting 

Chapter 3 Recording of Transactions 1 

Chapter-5 Bank Reconciliation Statement

Chapter-6 Trial Balance And Rectification Of Errors

Chapter-7 Depreciation, Provisions And Reserves

Chapter-8 Bill Of Exchange

Chapter-9 Financial Statements – 1

Chapter-10 Financial Statements – 2

Chapter-11 Accounts From Incomplete Records

Chapter-12 Applications of Computers in Accounting

Chapter-13 Computerised Accounting System

Chapter-14 Depreciation

Chapter-15 Bank Reconciliation Statement

We have provided all the important above in the article regarding the CBSE NCERT Solutions For class 11 Accountancy Chapter-4. If you have any queries, you can mention them in the comment section.

FAQ (Frequently asked questions): NCERT Solutions for Class 11 Accountancy Chapter 4

What is the purpose of contra entry?

In accounting, there are various types of entries that everyone should be familiar with. One of these entries is about the concept of contra entrance. Cash or bank transactions such as withdrawals and deposits are referred to as counter entries. The primary goal of counter entry is to show how such transactions affect both cash and bank balances. In the leisure Folio column, a C denotes a counter item. It’s also documented on both sides of two-column cashbook offers. Check or visit our website if you have any additional queries about the chapter 4 transaction recording.

What exactly is a petty cash book?

A petty cash book is a chronological record of a company’s petty cash expenses. It is a component of a manual record-keeping system rather than a computer-based record-keeping system. Petty cash expenses are modest expenses that are incurred on a significant scale by several sections of a company and have their own ledger account.
This makes it easy to keep track of spending that would otherwise go unnoticed. It includes expenses like stationary postage, travel-related expenses food and canteen expenses, et cetera. A lot of small hotels and restaurants adopt petty cash records as it makes it easier to record small everyday expenses.

What are the types of vouchers prepared in a business firm?

In a business firm, the following types of vouchers are prepared:
· Purchase voucher
· Sales voucher
· Cash payment voucher
· Cash Receipt voucher
· Bank payment or Cheque payment voucher
· Bank Receipt or Cheque Receipt voucher
· Journal voucher
· Sales Return voucher
· Purchase Return voucher
· Contra voucher

What is the meaning of the term Revenue?

Revenue expenditure is defined as a portion of government spending that does not include asset acquisition. Revenue is estimated using current-year expenditures. We have provided all the important above in the article regarding the NCERT Solutions of class 11 Accountancy Chapter-4. If you have any queries, you can mention them in the comment section.

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