Recording of Transactions – II Extra Questions of Class 11 Accountancy

Class 11 Accountancy Extra Questions

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Class 11 Chapter 4 Accountancy Extra Questions

Ch-4 Recording of Transactions -II Cash Books & other Books

1. Which balance of the bank column in the cash book signifies bank overdraft?
2. Mention two transactions which are recorded in journal proper.
3. Is it correct to say, sales book is a record prepared from invoices issued to customers?
4. In which book of original entry, a discount of Rs. 50 offered for an early payment of cash of Rs. 1,050 be recorded?
5. Described the advantages of sub-dividing the journal?
6. Prepare the purchases return book in the book of Abdulla Stores from the following transactions:
   

   2013
   Mar 10	Returned to Rizwan & Sons
   	1 Orient fan 36″ @ Rs. 1,250
   	Trade discount 10%
   Mar 25	Returned to Ram & Co
   	1 dozen lamp-holders @ Rs. 200 per dozen
   Mar 27	Returned to Prem & Co
   	4 fancy light @ Rs. 50 each
   	The light was purchased in cash

7. From the following particulars provided by Rishi, prepare a cash book with suitable column.
   

   2013		Amt (Rs.)
   Mar 1	Cash in hand	85,000
   	Bank Balance with ICICI	2,50,000
   	Overdraft with (Axis)	1,75,000
   Mar 3	Cash sales	70,000
   Mar 5	Paid salary to staff by cheque on ICICI	1,00,000
   Mar 8	Cheque received from Raj deposited with Axis	90,000
   Mar 10	Cash deposited into ICICI	50,000
   Mar 12	Amount transferred from ICICI to Axis by cheque	30,000
   Mar 15	Cash withdrew from ICICI	80,000

8. Prepare two column cash book from the following transactions for the month of April, 2013
   

   2013		Amt (Rs.)
   Apr 1	Cash balance	25,000
   Apr 2	Paid to Y in full settlement of Rs. 5,000	4,750
   Apr 4	Received from Z, allowing him discount of Rs. 400	9,600
   Apr 7	Cash purchases	10,000
   Apr 11	Cash sales	15,000
   Apr 15	Received from X, allowed him discount Rs. 500	19,500
   Apr 21	Paid to W against his dues of Rs. 7,500	7,00
   Apr 25	Paid into bank	20,000
   Apr 30	Withdrew for personal use	5,000
   Apr 30	Paid salary and wages	15,000

9. Enter the following transactions in proper subsidiary books of Balram
   

   2013		Amt (Rs.)
   Jan 1	Sold goods to Rames	21,000
   	Bought of Hari Ram,	31,200
   Jan 2	Ramesh Returned goods	3,000
   	Sold to Dina Nath	22,000
   Jan 2	Purchased goods from Mangal	28,000
   Jan 4	Returned goods to Mangal	4,000
   Jan 4	Bought of Devi Dayal	13,000
   Jan 4	Sold to Zakir Hussain	14,000
   Jan 5	Zakir Hussain returned goods	1,800
   Jan 6	Sold to Ram Saran	20,000
   Jan 6	Sold to Ghanshyam	12,000
   Jan 7	Ram Saran returned goods	2,000
   Jan 7	Bought of  Devi Dayal	28,000
   Jan 8	Returned goods to Devi Dayal	3,000
   Jan 9	Purchased goods from Raghu Nath subject to a trade discount of 10%	40,000
   Jan 10	Sold to Raja Ram goods subject to trade discount of 5%	20,000

10. Prepare Simple Cash Book from the following transactions of Simarn, Delhi-
    

    2018		Rs.	2018		Rs.
    1/3	Ms. Simran Commenced business with cash	65,000	17/3	Paid for miscellaneous expenses	450
    3/3	Bought goods for cash, CGST and SGST Paid @ 6% each	6,850	19/3	Received cash from Mr. Trilok Chand	4,850
    4/3	Paid cash to Mr. Mohan	950	22/3	Purchased goods, CGST and SGST paid @ 6% each	2,500
    6/3	Deposited in Bank	40,000	22/3	Paid Salary	4,000
    6/3	Paid for office furniture in cash, CGST and SGST Paid @ 6% each	4,650	25/3	Paid rent, CGST and SGST paid @ 6% each	900
    9/3	Sold goods for cash charge CGST and SGST @ 6% each	30,000	28/3	Paid electricity bill	350
    12/3	Paid wages in cash	1,200	29/3	Paid for advertising, CGST and SGST paid @ 6% each	400
    13/3	Paid for Stationery, CGST and SGST paid @ 6% each	400	31/3	Paid into Bank	25,000
    15/3	Sold goods for cash, charged CGST and SGST @ 6% each	25,000

Ch-4 Recording of Transactions -II Cash Books & other Books

Answer

1. 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.
   1. Opening entry
   2. Recording of Depreciation
2. Yes, as the source documents for recording entries in the sales book are invoices
3. 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.
4. 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
   1. Division of Work: In place of one journal, many special journals are prepared. This results in division of work among various executives.
   2. Specialization: If a particular task is handled by a particular executive. This leads to specialization and increases efficiency.
   3. 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.
   4. 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.
   5. Quick Checking: In case of errors in recording, it is easier to find out the reasons of errors.
5. Total of Purchases Return Book – Rs. 1,325

   Purchase Return Book

   Date	Particulars	Debit Note No.	L.F.	Details	Amount
   10, March, 2013	M/s Rizwan & Sons 1 Orient fan 36″ @ Rs. 1,250 Less Trade discount 10%			1,250 125	1,125
   25, March, 2013	M/s Ram & Co 1 dozen lamp-holders @ Rs. 200 per dozen				200
   	Total				1,325 ======

   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.

6. Cash Book

   				Bank						Bank
   Date	Particulars	L/F	Cash	ICICI	Axis	Date	Particulars	L/F	Cash	ICICI	Axis
   			(Rs.)	(Rs.)	(Rs.)				(Rs.)	(Rs.)	(Rs.)
   2013						2013
   Mar 1	To Balanced b/d		85,000	2,50,000		Mar 1	By Balance b/d				1,75,000
   Mar 3	To Sales A/c		70,000			Mar 5	By Salaries A/c			1,00,000
   Mar 8	To Raj				90,000	Mar 10	By ICICI	C	50,000
   Mar 10	To Cash A/c	C		50,000		Mar 12	By Axis	C		30,000
   Mar 12	To ICICI	C			30,000	Mar 15	By Cash A/c	C		80,000
   Mar 15	To ICICI	C	80,000			Mar 15	By Balance c/d		1,85,000	90,000
   Mar 15	To Balance c/d				55,000
   			2,35,000 =======	3,00,000 =======	1,75,000 =======				2,35,000 =======	3,00,000 ======	1,75,000 ======
   Mar 16	To Balance c/d		1,85,000	90,000		Mar 16	By 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.

7. Cash Book

   Date	Particulars	V.No.	Cash	Discount	Date	Particulars	V.No.	Cash	Discount
   April 01, 2013	To Balance b/d		25,000		April 02, 2013	By Y		4,750	250
   April 04, 2013	To Z		9,600	400	April 07, 2013	By Purchases		10,000
   April 11, 2013	To Sales		15,000		April 21, 2013	By W		7,000	500
   April 15, 2013	To X		19,500	500	April 25, 2013	By Bank		20,000
   					April 30, 2013	By Drawing		5,000
   					April 30, 2013	By Salary & Wages		15,000
   					April 30, 2013	By Balance c/d		7,350
   			69,100 =====	900 =====				69,100 ======	750 =====
   May 1, 2013	To Balance b/d		7,350

8. 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

   Date	Particulars		Invoice No.	LF	Details (Rs.)	Total Amt (Rs.)
   2013
   Jan 1	Hari Ram					31,200
   Jan 2	Mangal					28,000
   Jan 4	Devi Dayal					13,000
   Jan 6	Devi Dayal					28,000
   Jan 6	Raghu Nath		40,000
   Jan 10	(-) Trade Discount 10%		4,000			36,000
   	Purchase A/c	Dr				1,36,200

   Sales Book

   Date	Particulars		Invoice No.	LF	Details (Rs.)	Total Amt (Rs.)
   2013
   Jan 1	Ramesh					21,000
   Jan 2	Dina Nath					22,000
   Jan 4	Zakir Hussain					14,000
   Jan 6	Ram Saran					20,000
   Jan 6	Ghanshyam					12,000
   Jan 10	Raja Ram				20,000
   	(-) Trade Discount @ 5%				1,000	19,000
   	Sales A/c	Cr				1,08,000

   Purchase Returns Book

   Date	Particulars		Debit Note No.	LF	Details (Rs.)	Total Amt (Rs.)
   2013
   Jan 4	Mangal					4,000
   Jan 8	Devi Dayal					3,000
   	Purchases Returns A/c	Cr				7,000

   Sales Returns Book

   Date	Particulars		Credit Note No.	LF	Details (Rs.)	Total Amt (Rs.)
   2013
   Jan 2	Rajesh					3,000
   Jan 5	Zakir Hussain					1,800
   Jan 7	Ram Saran					2,000
   	Sales Returns A/c	Dr				6,800

9. 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)

   Date	Particulars	LF	Rs.	Date	Particulars	LF	Rs.
   2018				2018
   Mar.1	To Capital A/c		65,000	Mar.3	By Purchase A/c		6,850
   Mar.9	To 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		1,800	Mar.4	By Mr. Mohan		950
   Mar.15	To Sales A/c		25,000	Mar.6	By Bank A/c		40,000
   	To Output CGST A/c		1,500	Mar.6	By Office Furn. A/c		4,650
   	To Output SGST A/c		1,500		By Input CGST A/c		279
   Mar.19	To Mr. Trilok Chand		4,850		By Input SGST A/c		279
   				Mar.12	By Wages A/c		1,200
   				Mar.13	By Stationery A/c		400
   					By Input CGST A/c		24
   					By Input SGST A/c		24
   				Mar.17	By Mise. Exp. A/c		450
   				Mar.22	By Purchase A/c		2,500
   					By Input CGST A/c		150
   					By Input SGST A/c		150
   				Mar.22	By Salary A/c		4,000
   				Mar.25	By Rent A/c		900
   					By Input CGST A/c		54
   					By Input SGST A/c		54
   				Mar.28	By Electricity bill		350
   				Mar.29	By Advertising A/c		400
   					By Input CGST A/c		24
   					By Input SGST A/c		24
   				Mar.31	By Bank A/c		25,000
   				Mar.31	By Balance c/d		41,916
   			1,31,450		Total		1,31,450
   Apr. 1	To Balance c/d		41,916