Recording of Transaction-2 chapter 4

NCERT Solution for Class 11 Accountancy Chapter 4 Recording of Transactions – 2

Class 11 Recording of Transactions – 2 taken from NCERT Book In this we will learn Intoduction of this chapter or Important points as well notes also and after that we will discuss some important numerical Question and Answer

class 11 Recording of Transactions - 2
Intoduction Recording of Transactions – 2

Chapter 4, “Recording of Transactions – 2,” delves deeper into the fundamental principles of accounting, building upon the concepts introduced in the previous chapter. This section continues to explore the art of accurately recording financial transactions, emphasizing the importance of systematic documentation and precision in accounting practices. Through practical examples and exercises, students will enhance their skills in journalizing transactions, ensuring a solid foundation for understanding more advanced accounting processes.

Recording of Transactions – 2 chapter 4 Important points
  1. Continuation of Recording Process:
    • This chapter extends the understanding of recording financial transactions initiated in the previous section.
    • It elaborates on the process of journalizing transactions systematically.
  2. Principles of Double Entry System:
    • Emphasis is placed on the principles of the double-entry system, where every transaction has dual effects on the accounting equation.
  3. Ledger Accounts:
    • Introduction to ledger accounts and their role in summarizing and classifying transactions.
    • Understanding how ledger accounts aid in organizing financial information.
  4. Posting from Journal to Ledger:
    • The chapter explains the procedure of posting entries from the journal to the respective ledger accounts.
    • Illustrations and exercises enhance practical knowledge.
  5. Balancing of Ledger Accounts:
    • Students learn the significance of balancing ledger accounts.
    • Techniques for balancing accounts and ensuring accuracy
Recording of Transactions – 2 chapter 4 Important Notes
  1. Double Entry System:
    • The chapter reinforces the double-entry system, emphasizing that every transaction has dual effects on the accounting equation.
    • Understanding the concept of debit and credit for different accounts.
  2. Role of Ledger Accounts:
    • Introduction to ledger accounts as tools for summarizing and classifying transactions.
    • Each ledger account represents a specific aspect of financial activity.
  3. Posting Process:
    • The process of posting transactions from the journal to ledger accounts is a critical step in maintaining accurate and organized financial records.
    • Students learn the art of posting entries systematically.
  4. Balancing Ledger Accounts:
    • The importance of balancing ledger accounts to ensure accuracy in financial reporting.
    • Techniques for balancing accounts and detecting errors.
  5. Trial Balance Significance:
    • The trial balance serves as a crucial tool for verifying the arithmetical accuracy of accounting entries.
    • Understanding the preparation and interpretation of a trial balance

class 11 Recording of Transactions – 2

Recording of Transactions – 2 chapter 4 Numerical Question and Answer

Question:1 On January 1, ABC Company purchased goods for ₹8,000 on credit from XYZ Supplier. Journalize the transaction


  • Debit: Purchases ₹8,000
  • Credit: XYZ Supplier ₹8,000

Question:2 ABC Company paid rent of ₹15,000 for the month. Journalize the entry.


  • Debit: Rent Expense ₹15,000
  • Credit: Cash ₹15,000

Question:3 XYZ Corporation received a utility bill of ₹5,000. Journalize the transaction.


  • Debit: Utilities Expense ₹5,000
  • Credit: Accounts Payable ₹5,000

Question:4 ABC Company sold goods on credit for ₹12,000. Journalize the entry.


  • Debit: Accounts Receivable ₹12,000
  • Credit: Sales ₹12,000
Class 11 Recording of Transaction-2 short Question and Answer

Question:1 what is the purpose of contra entry ?

Answer: 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 balance. this entry does not affect the financial positions of a business. a contra entry is recoreded in both sides of a two column cash book and is denoted by C” in ledger folio column.

Question:2 what are special purpose books ?

Answer: 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 puchases book are maintained for those transacttion that are routine and repetitive in nature. Recording through these books is economical and enables division of work among accountants.

Question:3 what is petty cash book ? how it is prepared ?

Answer : petty cash book is used for recording payment of petty expenses, which are of smaller denominations like postage, staionery, 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 method.

  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.

Question:4 Explain the meaning of posting of journal entries ?

Answer posting is the process of tranferring the business transactions from journal to ledgers.

Every transaction is first recorded in the journal and subsequently transferred to their respective accounts.

Question:5 what is difference between trade discount and cash discount ?


Basis of different Trade discount cash discount
Meaning It is allowed when goods are purchase or sold. it is allowed at the time of payment.
Recording in books It is recorded in invoice /bill but not in the books. It is recorded in the discount column of the cash book’s debit side, if allowed, and credit side, if received.
Purpose It is allowed to increase sale. It is allowed for earlier payment.
Deduction it is deducted from the price-list of the goods. It is not deducted from the price-list of the goods.

Question:6 write different between return inwards and return outwards.


basis of different Return inwards Return outwards
Meaning Goods sold to the customers, are returned by them. Goods purchased are returned to the suppliers.
balance it has debit balance. it has credit balance.
Treatment It is deducted from sales in the trading account. It is deducted from purchases in the trading account
Issued Credit note in prepared by the seller. Debit note is prepared by the buyer.
Reduction It reduces payment from the debtors. It reduces the payment made to the creditors
Term It is also termed as sales Return. It is also termed as purchase Returns.
Cash book and cash petty Account

Cash book

Date particulars L.FCash (Rs)Bank (Rs)Date particulars L.FCash (Rs)bank (Rs)
Cash (C)Bank (C)

Petty Cash book

Amount Received particulars Vouchers No.Amount paid (Rs) postage staionery conveyance Telephone and Telegram Miscellaneous Remarks

Class 11 Recording of Transactions – 2 Numerical Question and Answer

Question:1 Enter the following transactions in a simple cash book for December 2005 .

Date Transactions Amount
01cash in hand 12,000
05cash received from bhanu 4,000
07Rent paid 2,000
10purchased goods murari for cash 6,000
15sold goods for cash 9,000
18 purchase stationery 300
22cash paid to Rahul on account 2,000
28 paid salary 1,000
30 paid rent 500



Dr (Date) particulars L.FAmount(Rs)Date particulars L.FAmount(Rs)
Dec 01balance b/d 12,000Dec 7 Rent 2,000
Dec 05bhanu 4,000Dec 10 purchases 6,000
Dec 159,000Dec 18 stationery 300
Dec 22 Rahul 2,000
Dec 28 salaries 1,000
Dec 30 Rent 500
Dec 31 balance c/d

Question:2 Records the folloiwng transactions in simple cash book for November 2005.

Date Transaction Amount
01cash in hand 12,500
04cash paid to hari 600
07purchased goods 800
12cash received from amit 1,960
16sold goods for cash 800
20paid to manish 590
25 paid cartage 100
31 paid salary 1,000



Dr (date)particulars L.FAmount Date particulars L.FAmount
Nov-01balance b/d 12,500Nov-04hari 600
Nov-12Amit 1,960Nov-07purchase 800
Nov-16sales 800Nov-20Manish 590
Nov-25cartage 100
Nov-30salaries 1,000
Nov -30balance c/d 12,170

Note : there is a misprint in the question as there is a transaction on November 31, which is not possible as there are only 30 days in the month of November.

Question:3 Record the following transactions in a bank column cash book for December 2005.

Date Transactions Rs
01started business with cash 80,000
04Deposited in bank 50,000
10Received cash from Rahul 1,000
15Bought goods for cash 8,000
22Bought goods by cheque 10,000
25paid shyam by cash 20,000
30Drew from bank for office use 2,000
31 Rent paid by cheque 1,000



Dr (Date )particulars L.Fcash RsBank RsDate particulars L.FCash Rs Bank Rs
Dec 01capital 80,000Dec 04 bank C50,000
Dec 04Cash C50,000Dec 15purchases 8,000
Dec 10 Rahul 1,000Dec 22 purchases 10,000
Dec 30 bank Bank C2,000Dec 25 shyam 20,000
Dec 30 cash C2,000
Dec 31 Rent 1,000
Dec 31 balance c/d 5,00037,000


In conclusion, Chapter 4, “Recording of Transactions – 2,” equips students with advanced skills in accounting. It covers essential topics such as the double-entry system, ledger accounts, posting procedures, trial balance, and error rectification. Practical exercises and real-life applications enhance comprehension, laying a strong foundation for accurate financial recording and reporting.


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