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.
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:
- 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.
- 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) |
– |
||||
- 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.
- 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.
- 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:
- Division of labour: By delegating the work to a petty cashier the cashier is able to look into other aspects of a firm.
- 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.
- Less error prone: Head cashier will be making periodic audits on the petty cash book, so it will be error free.
- Ease of posting: Only the petty expenses are recorded periodically which makes posting easier.
- 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.
- 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.
- 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.
- 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 |
- 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-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-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.