NCERT Solutions for Class 11 Accountancy Financial Accounting Part-1 Chapter 4

Recording of Transactions - II Class 11

Chapter 4 Recording of Transactions - II Exercise Solutions

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Short answers : Solutions of Questions on Page Number : 142

Q1 :  

Briefly state how the cash book is both journal and a ledger?


Answer :

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.

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Q2 :  

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 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.

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Q3 :  

What are special purpose books?


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Q4 :  

What is petty cash book? How it is prepared?


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Q5 :  

Explain the meaning of posting of journal entries?


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Q6 :  

Define the purpose of maintaining subsidiary journal.


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Q7 :  

Write the difference between return inwards and return outwards.


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Q8 :  

What do you understand by ledger folio?


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Q9 :  

What is difference between trade discount and cash discount?


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Q10 :  

Write the process of preparing ledger from a journal.


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Q11 :  

What do you understand by Imprest amount in petty cash book?


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<< Previous Chapter 3 : Recording of Transactions - I Next Chapter 5 : Bank Reconciliation Statement >>

Long answers : Solutions of Questions on Page Number : 142

Q1 :  

Explain the need for drawing up the special purpose books.


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Q2 :  

What is cash book? Explain the types of cash book.


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Q3 :  

What is contra entry? How can you deal this entry while preparing double column cash book?


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Q4 :  

What is petty cash book? Write the advantages of petty cash book?


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Q5 :  

Describe the advantages of sub-dividing the Journal.


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Q6 :  

What do you understand by balancing of account?


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<< Previous Chapter 3 : Recording of Transactions - I Next Chapter 5 : Bank Reconciliation Statement >>

Numerical questions : Solutions of Questions on Page Number : 143

Q1 :  

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

 

 

 

Rs

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

 


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Q2 :  

Record the following transaction in simple cash book for November 2005:

 

 

 

Rs

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

31

Paid salary

1,000

 

 


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Q3 :  

Enter the following transaction in Simple cash book for December 2005:

 

 

 

Rs

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 S. Kumar

1,200

30

Paid rent

600

 

 


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Q4 :  

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

 

 

Rs

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

 

           


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Q5 :  

Prepare a double column cash book with the help of following information for December 2005 :

 

 

 

Rs

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 Dinker and received a cheque

20,000

10

Paid to Sushmita cash

20,000

14

Cheque received on December 06, 2005 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

 

 


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Q6 :  

Enter the following transactions in double column cash book of M/s Ambica Traders for November 2005:

 

 

Rs

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

 

 


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Q7 :  

Prepare double column cash book from the following information for September 2005:

 

 

 

 Rs

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

 

 


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Q8 :  

Enter the following transaction in a double column cash book of M/s Mohit Traders for January 2005:

 

 

Rs

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

 

 


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Q9 :  

Prepare double column cash book from the following transactions for the year December 2005:

 

 

 

Rs

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

 

 


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Q10 :  

M/s Ruchi trader started their cash book with the following balances on Dec. 01 2005 : cash in hand Rs 1,354 and balance in bank current account Rs 7,560. He had the following transaction in the month of December, 2005:

 

 

Rs

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

 

 


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Q11 :  

Prepare petty cash book from the following transactions. The imprest amount is Rs 2,000.

January

 

Rs

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

 

 


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Q12 :  

Record the following transactions during the week ending Dec. 30, 2005 with a weekly imprest Rs 500

 

 

 

Rs

24

Stationery

100

25

Bus fare

12

25

Cartage

40

26

Taxi fare

80

27

Wages to casual labour

90

29

Postage

80

 

 


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Q13 :  

Enter the following transactions in the Purchase Journal (Book) of M/s Gupta Traders of July 2005:

01

Bought from Rahul Traders as per invoice no. 20041

 

40 Registers @ Rs 60 each

 

80 Gel Pens @ Rs 15 each

 

50 note books @ Rs 20 each

 

Trade discount 10%.

15

Bought from Global Stationers as per invoice no. 1132

 

40 Ink Pads @ Rs 8 each

 

50 Files @ Rs 10 each

 

20 Color Books @ Rs 20 each

 

Trade Discount 5%

23

Purchased from Lamba Furniture as per invoice no. 3201

 

2 Chairs @ 600 per chair

 

1 Table @ 1,000 per table

25

Bought from Mumbai Traders as per invoice no. 1111

 

10 Paper Rim @ Rs 100 per rim

 

400 drawing Sheets @ Rs 3 each

 

20 Packet water colour @ Rs 40 per packet

 

 


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Q14 :  

Enter the following transactions in sales (journal) book of M/s. Bansal electronics:

September

01

Sold to Amit Traders as per bill no.4321

 

20 Pocket Radio @ 70 per Radio

 

2, T.V. set, B&W.(6.) @ 800 Per T.V.

 

10. Sold to Arun Electronics as per bill no.4351

 

5 T.V. sets (20.) B&W @ Rs 3,000 per T.V.

 

2 T.V. sets (21.) Colour @ Rs 4,800 per T.V.

22

Sold to Handa Electronics as per bill no.4,399

 

10 Tape recorders @ Rs 600 each

 

5 Walkman @ Rs 300 each

28

Sold to Harish Trader as per bill no.4430

 

10 Mixer Juicer Grinder @ Rs 800 each.

 

 


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Q15 :  

Prepare a purchases return (journal) book from the following transactions for January 2006.

 

 

Rs

05

Returned goods to M/s Kartik Traders

1,200

10

Goods returned to Sahil Pvt. Ltd.

2,500

17

Goods returned to M/s Kohinoor Traders for list price Rs 2,000 less 10% trade discount.

 

28

Return outwards to M/s Handa Traders

550

 

 


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Q16 :  

Prepare Return Inward Journal (Book) from the following transactions of M/s Bansal Electronics for November 2005:

 

 

Rs

04

M/s Gupta Traders returned the goods

1,500

10

Goods returned from M/s Harish Traders

800

18

M/s Rahul Traders returned the goods not as per specifications

1,200

28

Goods returned from Sushil Traders

1,000

 


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Q17 :  

Prepare proper subsidiary books and post them to the ledger from the following transactions for the month of February 2006:

 

 

Rs

01

Goods sold to Sachin

5,000

04

Purchase from Kushal Traders

2,480

06

Sold goods to Manish Traders

2,100

07

Sachin returned goods

600

08

Returns to Kushal Traders

280

10

Sold to Mukesh

3,300

14

Purchased from Kunal Traders

5,200

15

Furniture purchased from Tarun

3,200

17

Bought of Naresh

4,060

20

Return to Kunal Traders

200

22

Return inwards from Mukesh

250

24

Purchased goods from Kirit & Co. for list price of

5,700

 

less 10% trade discount

 

25

Sold to Shri Chand goods

6,600

 

less 5% trade discount

 

26

Sold to Ramesh Brothers

4,000

28

Return outwards to Kirit and Co.

1,000

 

less 10% trade discount

 

28

Ramesh Brothers returned goods Rs 500.

 

 

 


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Q18 :  

The following balances of ledger of M/s Marble Traders on April 01, 2006

 

Rs

Cash in hand

6,000

Cash at bank

12,000

Bills receivable

7,000

Ramesh (Cr.)

3,000

Stock (Goods)

5,400

Bills payable

 2,000

Rahul (Dr.)

9,700

Himanshu (Dr.)

10,000

 

Transactions during the month were:

April

 

Rs

01

Goods sold to Manish

3,000

02

Purchased goods from Ramesh

8,000

03

Received cash from Rahul in full settlement

9,200

05

Cash received from Himanshu on account

4,000

06

paid to Remesh by cheque

6,000

08

Rent paid by cheque

1,200

10

Cash received from manish

3,000

12

Cash sales

6,000

14

Goods returned to Ramesh

1,000

15

Cash paid to Ramesh in full settlement

3,700

16

Discount received

300

18

Goods sold to Kushal

10,000

20

Paid trade expenses

200

21

Drew for personal use

1,000

22

Goods return from Kushal

1,200

24

Cash received from Kushal

6,000

26

Paid for stationery

100

27

Postage charges

60

28

Salary Paid

2,500

29

Goods purchased from Sheetal Traders

7,000

30

Sold goods to Kirit

6,000

 

Goods purchased from Handa Traders

5,000

 

Journalise the above transactions and post them to the ledger.

 

 


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<< Previous Chapter 3 : Recording of Transactions - I Next Chapter 5 : Bank Reconciliation Statement >>

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