Recording of Transactions-II

Class 11 · Accountancy

4 ideas in Class 11 Accountancy, explained in plain words, with games and quizzes to practise.

Cash Book

Part of: Special Journals

Cash book journals cash and bank receipts, payments daily; single, double and triple columns add bank, discount; it doubles as cash account.

Why it matters. Cash tracked daily. Bank reconciled.

Formulas

Cash balance = total cash receipts - total cash payments
Bank balance = total bank deposits - total bank withdrawals

Key words

Cash book: : The journal recording cash and bank receipts and payments daily.
Single column: : A cash book with only a cash column for physical cash deals.
Double column: : A cash book adding a bank column beside the cash column.
Triple column: : A cash book adding a discount column beside cash and bank.
Contra entry: : A cash-to-bank or bank-to-cash transfer recorded on both sides.

Try it in two minutes

Enter receipts left.
Enter payments right.
Balance the cash.

Try at home. Keep a cash diary.

Purchases and Sales Books

Part of: Special Journals

Purchases book lists credit goods bought; sales book lists credit goods sold; cash and asset deals stay out; totals post to ledger.

Why it matters. Credit trade tracked. Totals post.

Formulas

Invoice value = list price - trade discount
Net purchases = cash purchases + credit purchases - purchase returns

Key words

Purchases book: : The journal listing credit purchases of goods for resale.
Sales book: : The journal listing credit sales of goods dealt in.
Trade discount: : A price cut on list price, deducted before recording the invoice.
Ledger posting: : Carrying book totals to the personal and goods accounts in the ledger.

Try it in two minutes

Check credit goods.
Enter supplier, buyer.
Total the book.

Try at home. List credit buys.

Returns Books and Journal Proper

Part of: Posting and Balancing

Returns books track goods sent back both ways; journal proper takes opening, closing, adjustment, transfer and asset credit entries.

Why it matters. Returns adjust trade. Odd entries housed.

Formulas

Total debits = total credits in every journal entry
Net sales = gross sales - sales returns

Key words

Purchase returns: : Goods sent back to suppliers, recorded in the purchase returns book.
Sales returns: : Goods taken back from buyers, recorded in the sales returns book.
Journal proper: : The journal for odd entries like opening, closing, adjustment and transfers.
Opening entry: : The first journal entry carrying forward assets, liabilities and capital.
Adjustment entry: : A year-end entry for outstanding, prepaid, accrued or depreciation items.

Try it in two minutes

Spot returned goods.
Enter returns book.
House leftovers in journal proper.

Try at home. Note returned items.

Ledger Posting and Balancing

Part of: Posting and Balancing

Ledger groups each account; post debits, credits with folio links; total both sides; carry the difference as balance down.

Why it matters. Accounts summarised. Balances trial-ready.

Formulas

Balance = larger side total - smaller side total
Debit balance = debit total above credit total

Key words

Ledger: : The book grouping each account from all journals in one place.
Folio: : The page link written in journal and ledger to trace each posting.
Balancing: : Totalling both sides of an account and carrying the difference down.
Balance carried down: : The carried difference that reopens an account for the next period.

Try it in two minutes

Post each journal line.
Total both sides.
Carry the balance.

Try at home. Balance a ledger page.

What your child will practise

Cash Book: Desert Puzzle (Clue Puzzle)
Cash Book: Desert Quick Fire (Quick Fire)
Ledger Posting and Balancing: Space Puzzle (Clue Puzzle)
Purchases and Sales Books: Desert Quest (Flip and Match)
Returns Books and Journal Proper: Jungle Quick Fire (Quick Fire)

Quiz: Cash Book (8 questions)
Quiz: Ledger Posting and Balancing (8 questions)
Quiz: Purchases and Sales Books (8 questions)
Quiz: Returns Books and Journal Proper (8 questions)

Recording of Transactions-II

Class 11 · Accountancy

4 ideas in Class 11 Accountancy, explained in plain words, with games and quizzes to practise.

Cash Book

Part of: Special Journals

Cash book journals cash and bank receipts, payments daily; single, double and triple columns add bank, discount; it doubles as cash account.

Why it matters. Cash tracked daily. Bank reconciled.

Formulas

Cash balance = total cash receipts - total cash payments
Bank balance = total bank deposits - total bank withdrawals

Key words

Cash book: : The journal recording cash and bank receipts and payments daily.
Single column: : A cash book with only a cash column for physical cash deals.
Double column: : A cash book adding a bank column beside the cash column.
Triple column: : A cash book adding a discount column beside cash and bank.
Contra entry: : A cash-to-bank or bank-to-cash transfer recorded on both sides.

Try it in two minutes

Enter receipts left.
Enter payments right.
Balance the cash.

Try at home. Keep a cash diary.

Purchases and Sales Books

Part of: Special Journals

Purchases book lists credit goods bought; sales book lists credit goods sold; cash and asset deals stay out; totals post to ledger.

Why it matters. Credit trade tracked. Totals post.

Formulas

Invoice value = list price - trade discount
Net purchases = cash purchases + credit purchases - purchase returns

Key words

Purchases book: : The journal listing credit purchases of goods for resale.
Sales book: : The journal listing credit sales of goods dealt in.
Trade discount: : A price cut on list price, deducted before recording the invoice.
Ledger posting: : Carrying book totals to the personal and goods accounts in the ledger.

Try it in two minutes

Check credit goods.
Enter supplier, buyer.
Total the book.

Try at home. List credit buys.

Returns Books and Journal Proper

Part of: Posting and Balancing

Returns books track goods sent back both ways; journal proper takes opening, closing, adjustment, transfer and asset credit entries.

Why it matters. Returns adjust trade. Odd entries housed.

Formulas

Total debits = total credits in every journal entry
Net sales = gross sales - sales returns

Key words

Purchase returns: : Goods sent back to suppliers, recorded in the purchase returns book.
Sales returns: : Goods taken back from buyers, recorded in the sales returns book.
Journal proper: : The journal for odd entries like opening, closing, adjustment and transfers.
Opening entry: : The first journal entry carrying forward assets, liabilities and capital.
Adjustment entry: : A year-end entry for outstanding, prepaid, accrued or depreciation items.

Try it in two minutes

Spot returned goods.
Enter returns book.
House leftovers in journal proper.

Try at home. Note returned items.

Ledger Posting and Balancing

Part of: Posting and Balancing

Ledger groups each account; post debits, credits with folio links; total both sides; carry the difference as balance down.

Why it matters. Accounts summarised. Balances trial-ready.

Formulas

Balance = larger side total - smaller side total
Debit balance = debit total above credit total

Key words

Ledger: : The book grouping each account from all journals in one place.
Folio: : The page link written in journal and ledger to trace each posting.
Balancing: : Totalling both sides of an account and carrying the difference down.
Balance carried down: : The carried difference that reopens an account for the next period.

Try it in two minutes

Post each journal line.
Total both sides.
Carry the balance.

Try at home. Balance a ledger page.

What your child will practise

Cash Book: Desert Puzzle (Clue Puzzle)
Cash Book: Desert Quick Fire (Quick Fire)
Ledger Posting and Balancing: Space Puzzle (Clue Puzzle)
Purchases and Sales Books: Desert Quest (Flip and Match)
Returns Books and Journal Proper: Jungle Quick Fire (Quick Fire)

Quiz: Cash Book (8 questions)
Quiz: Ledger Posting and Balancing (8 questions)
Quiz: Purchases and Sales Books (8 questions)
Quiz: Returns Books and Journal Proper (8 questions)