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Worksheet Solutions: Recording of Transactions - II | Accountancy Class 11 - Commerce PDF Download

Q1: Which balance of the bank column in the cash book signifies bank overdraft?
Ans:
Credit balance in the bank column of the cash book signifies bank overdraft. An overdraft is an extension of credit from a lending institution when an account reaches zero.

  • Opening entry
  • Recording of Depreciation


Q2: Mention two transactions which are recorded in journal proper.
Ans: 
Yes, as the source documents for recording entries in the sales book are invoices

Q3: Is it correct to say, sales book is a record prepared from invoices issued to customers?
Ans:
Cash book. A cash discount is a reduction in the amount of an invoice that the seller allows the buyer. This discount is given in exchange for the buyer paying the invoice earlier than the normal payment date of the invoice.

Q4: In which book of original entry, a discount of Rs. 50 offered for an early payment of cash of Rs. 1,050 be recorded?
Ans:
In small concerns only one journal and one ledger may serve the purpose, because the number of transactions is very small. But in large business concerns the number of transactions are numerous, just one journal and one ledger will not do the job. That will cause much inconvenience i.e., if we have only one journal in a large scale business, it is not possible for one bookkeeper to record all the transactions in time. So the journal is sub divided. The various advantages of subsidiary books are as follows

  • Division of Work: In place of one journal, many special journals are prepared. This results in division of work among various executives.
  • Specialization: If a particular task is handled by a particular executive. This leads to specialization and increases efficiency.
  • Time Saving: Dividing journal into different categories means different executives can work simultaneously on different journals which will increase the speed of work and will save time.
  • Easy Access to Desired Information: Transactions are recorded on the basis of their nature i.e., purchase transactions in purchase book, sales transactions in sales book, etc. This facilitates easy and quick accessibilities to particular type of transactions.
  • Quick Checking: In case of errors in recording, it is easier to find out the reasons of errors.


Q5: Described the advantages of sub-dividing the journal?
Ans: 
Total of Purchases Return Book – Rs. 1,325
Purchase Return Book
Worksheet Solutions: Recording of Transactions - II | Accountancy Class 11 - Commerce

Q6: Prepare the purchases return book in the book of Abdulla Stores from the following transactions:
Worksheet Solutions: Recording of Transactions - II | Accountancy Class 11 - Commerce
Ans:
Cash Book




Bank



Bank
DateParticularsL/FCashICICIAxisDateParticularsL/FCashICICIAxis



(Rs.)(Rs.)(Rs.)


(Rs.)(Rs.)(Rs.)
2013




2013




Mar 1To Balanced b/d
85,0002,50,000
Mar 1By Balance b/d


1,75,000
Mar 3To Sales A/c
70,000

Mar 5By Salaries A/c

1,00,000
Mar 8To Raj


90,000Mar 10By ICICIC50,000

Mar 10To Cash A/cC
50,000
Mar 12By AxisC
30,000
Mar 12To ICICIC

30,000Mar 15By Cash A/cC
80,000
Mar 15To ICICIC80,000

Mar 15By Balance c/d
1,85,00090,000
Mar 15To Balance c/d


55,000








2,35,000


=======

3,00,000


=======

1,75,000


=======




2,35,000


=======

3,00,000


======

1,75,000


======

Mar 16To Balance c/d
1,85,00090,000
Mar 16By Balance c/d


55,000

The cash book is used to record receipts and payments of cash. It works as a book of original entry as well as a ledger account. The entries related to receipt and payment of cash are first recorded in the cash book and then posted to the relevant ledger accounts.

Q7: From the following particulars provided by Rishi, prepare a cash book with suitable column. 
Worksheet Solutions: Recording of Transactions - II | Accountancy Class 11 - Commerce
Ans: 
Cash Book

DateParticularsV.No.CashDiscountDateParticularsV.No.CashDiscount
April 01, 2013To Balance b/d
25,000
April 02, 2013By Y
4,750250
April 04, 2013To Z
9,600400April 07, 2013By Purchases
10,000
April 11, 2013To Sales
15,000
April 21, 2013By W
7,000500
April 15, 2013To X
19,500500April 25, 2013By Bank
20,000





April 30, 2013By Drawing
5,000





April 30, 2013By Salary & Wages
15,000





April 30, 2013By Balance c/d
7,350



69,100


=====

900


=====




69,100


======

750


=====

May 1, 2013To Balance b/d
7,350





Q8: Prepare two column cash book from the following transactions for the month of April, 2013
Worksheet Solutions: Recording of Transactions - II | Accountancy Class 11 - Commerce
Ans: 
Subsidiary Books are those books of original entry in which transactions of similar nature are recorded at one place and in chronological order. In a big concern, recording of all transactions in one Journal and posting them into various ledger accounts will be very difficult and involve a lot of clerical work. In this question there is a need to draw Purchase Book, Sales Book, Sales Return Book, & Purchase Return Book. Purchase Book is that book in which we record all the business credit transactions related to the purchase of goods only. It is an original entry book like a Cash Book. It is also known as purchase register, purchase day book, purchase journal and purchase invoice book. Sales book is a book in which non-cash sales are recorded with details of customer, invoice, amount and date; these details are later posted to each customer’s account in the sales ledger. At times the buyer may return goods due to poor quality, inaccurate quantity, untimely delivery or other reasons. It is also called returns inwards and an appropriate sales return or a returns inward book is maintained. Purchases returns book is a book in which the goods returned to suppliers are recorded. It is also called returns outward book or purchases returns day book. Goods may be returned because they are of the wrong kind or not up to sample or because they are damaged etc. The above mentioned all books are prepared as follows:-
Purchase Book
Worksheet Solutions: Recording of Transactions - II | Accountancy Class 11 - Commerce
Sales Book
Worksheet Solutions: Recording of Transactions - II | Accountancy Class 11 - Commerce
Purchase Returns Book
Worksheet Solutions: Recording of Transactions - II | Accountancy Class 11 - Commerce
Sales Returns Book
Worksheet Solutions: Recording of Transactions - II | Accountancy Class 11 - Commerce


Q9: Enter the following transactions in proper subsidiary books of Balram
Worksheet Solutions: Recording of Transactions - II | Accountancy Class 11 - Commerce
Ans: 
A cash book is a financial journal that contains all cash receipts and payments, including bank deposits and withdrawals. Entries in the cash book are then posted into the general ledger. Larger firms usually divide the cash book into two parts: the cash disbursement journal that records all cash payments, such as accounts payable and operating expenses, and the cash receipts journal, which records all cash receipts, such as accounts receivable and cash sales. In this question it is to be maintained as follows:-
Cash book (Single Column)

DateParticularsLFRs.DateParticularsLFRs.
2018


2018


Mar.1To Capital A/c
65,000Mar.3By Purchase A/c
6,850
Mar.9To Sales A/c
30,000
By Input CGST A/c
411

To Output CGST A/c
1,800
By Input SGST A/c
411

To Output SGST A/c
1,800Mar.4By Mr. Mohan
950
Mar.15To Sales A/c
25,000Mar.6By Bank A/c
40,000

To Output CGST A/c
1,500Mar.6By Office Furn. A/c
4,650

To Output SGST A/c
1,500
By Input CGST A/c
279
Mar.19To Mr. Trilok Chand
4,850
By Input SGST A/c
279




Mar.12By Wages A/c
1,200




Mar.13By Stationery A/c
400





By Input CGST A/c
24





By Input SGST A/c
24




Mar.17By Mise. Exp. A/c
450




Mar.22By Purchase A/c
2,500





By Input CGST A/c
150





By Input SGST A/c
150




Mar.22By Salary A/c
4,000




Mar.25By Rent A/c
900





By Input CGST A/c
54





By Input SGST A/c
54




Mar.28By Electricity bill
350




Mar.29By Advertising A/c
400





By Input CGST A/c
24





By Input SGST A/c
24




Mar.31By Bank A/c
25,000




Mar.31By Balance c/d
41,916



1,31,450
Total
1,31,450
Apr. 1To Balance c/d
41,916


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