Recording of Transactions-I
Class 11 · Accountancy
4 ideas in Class 11 Accountancy, explained in plain words, with games and quizzes to practise.
Business Transactions
Part of: Transactions and Vouchers
Money-valued exchanges enter books; hiring alone does not; buying, selling and paying qualify; each deal has two sides.
Why it matters. Only deals record. Two sides balance.
Formulas
- Every transaction has two sides of equal value
Key words
- Business transaction
- : An event with money value that enters the books.
- Money measurement
- : Recording only what can be measured in money.
- Goods deal
- : Buying or selling goods for cash or credit.
- Service deal
- : Work done or received for a money price.
Try it in two minutes
- Check money value.
- Confirm exchange.
- Find both sides.
Try at home. List home money deals.
Source Documents
Part of: Transactions and Vouchers
Cash memos prove cash deals; invoices bill credit; receipts confirm payment; vouchers authorise journal entries with serial control.
Why it matters. Proof backs books. Serials stop loss.
Formulas
- Every journal entry rests on a serially numbered voucher
Key words
- Cash memo
- : A written proof of a cash purchase.
- Invoice
- : A bill sent for credit sales with details and terms.
- Receipt
- : A signed proof that money was received.
- Voucher
- : The paper that authorises a journal entry.
- Serial control
- : Numbering vouchers in order to stop loss and misuse.
Try it in two minutes
- Collect the proof.
- Match the deal.
- Serial the voucher.
Try at home. File weekly bills.
Debit and Credit Rules
Part of: Debit Credit and Journal
Assets and expenses rise on debit; liabilities, capital and incomes rise on credit; opposite sides fall; personal, real and nominal rules agree.
Why it matters. Sides never confuse. Entries balance.
Formulas
- Debit what comes in; credit what goes out (real accounts)
- Debit the receiver; credit the giver (personal accounts)
- Debit expenses and losses; credit incomes and gains (nominal accounts)
- Assets = Capital + Liabilities
Key words
- Debit
- : The left side of an account, recording gains in value.
- Credit
- : The right side of an account, recording giving up of value.
- Personal account
- : An account of a person or firm.
- Real account
- : An account of a thing owned, like machinery.
- Nominal account
- : An account of an expense, loss, income or gain.
Try it in two minutes
- Name the accounts.
- Classify each one.
- Pick debit, credit.
Try at home. Side five home deals.
Journal Entries
Part of: Debit Credit and Journal
Journal lists date, accounts, debit, credit and narration first; compound entries combine; totals must match before ledger posting.
Why it matters. First record correct. Posting easy.
Formulas
- Total debits = total credits in every entry
Key words
- Journal
- : The first book where each deal is recorded date-wise.
- Narration
- : A short note below an entry explaining the deal.
- Compound entry
- : One entry covering several debits or credits together.
- Balancing
- : Matching debit and credit totals before posting ahead.
Try it in two minutes
- Date the deal.
- Debit, then credit.
- Narrate briefly.
Try at home. Journal pocket money.
What your child will practise
- Business Transactions: Space Puzzle (Clue Puzzle)
- Business Transactions: Space Quick Fire (Quick Fire)
- Debit and Credit Rules: Ocean Puzzle (Clue Puzzle)
- Journal Entries: Space Quest (Flip and Match)
- Source Documents: Candy Quick Fire (Quick Fire)
- Quiz: Business Transactions (8 questions)
- Quiz: Debit and Credit Rules (8 questions)
- Quiz: Journal Entries (8 questions)
- Quiz: Source Documents (8 questions)