Revision Notes

Class- 11 Accountancy
Chapter 4 - Recording Of Transactions - II

CASHBOOK
This book is used for recording all the transactions related to cash payment and
cash receipt.
All bank related transactions are also recorded in this book.

Difference between cash account and cash book.

Cash account Cash book

Cash account is an account in a It is a separate book maintained for

ledger. recording all cash related
transactions.

It records only one aspect of cash It records both the aspects of a

related transactions. transaction.

It is necessary to open a cash a/c in It is not necessary to open a cash

the ledger when the transactions are account in the ledger, when
recorded in a journal. transactions are recorded in the cash
book.

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  Single column cash book
Cashbook
Dr. Cr.

Date Particulars V. L.F. Amount Date Particulars V. L.F Amount

No No

To…... By…..

Let’s practice it with a question :-

Enter the following transaction in a single column cash book:-
March 1. Commenced business with cash Rs10000.
2. Bought goods for cash Rs 2500.
5. Sold goods for cash Rs 2000.
10. Goods purchased from Ravi on credit Rs 5000.
13. Paid to Ravi Rs 3500.
15. Cash sale Rs 4000.
18. Purchased furniture for cash Rs 3099.
20. Paid wages Rs 190.
24. Paid rent Rs 200.
26. Received commission Rs 300.
28. Withdrew for personal use Rs 500.
31. Paid salary Rs 450.

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Ans:
Dr. Cr.
Date Particulars V. L.f Amount Date Particulars V. L.f Amount
no (in Rs) no (in Rs)

2017 2017
March To capital 10000 Marc
1 a/c h By
5 To sales 2000 2 purchases 2500
15 a/c 4000 a/c
To sales By ravi 3500
26 a/c 300 13 a/c
To 18 By 3000
commissi furniture
on a/c a/c 190
20 By wages
a/c 200
24 By rent
a/c 500
28 By
drawings
a/c 450
31 By salary
16300 a/c 10340
Total
Total payment
receipts 31 By 5960
balance
16300 c/d 16300
April 1 5960

To
balance
b/d

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DOUBLE COLUMN CASH BOOK
Double column cash book is a cash book with two columns on each side, one
column for recording cash transactions and the other for recording bank
transactions .

Dr. Cr.
Date Particu V. L. Cash Bank Date Particul V. L. Cash Bank
lars no F ars no F
To… By…
…..

Let’s practice it with a question:-

Amounts
Date Details
(in Rs)
Sep 1 Bank balance. 21000
Sep 1 Cash balance . 7500
Sep 4 Purchased goods by cheque . 6000
Sep 8 Sale of goods for cash . 3000
Sep 13 Purchase of machinery by cheque. 2750
Sep16 Sold goods and received cheques (deposited 2250
same day. 8700
Sep 17 Purchase goods from Miraula in cash. 550
Sep 20 Purchase stationery by cheque. 750
Sep 24 Cheque given to Rohit. 5000
Sep 27 Cash withdrawn from the bank. 1250
Sep 31 Rent paid by cheque. 1750
Sep 31 Paid salary. 1550

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 Solution:
Dr.
Cr.
Date Particula V. L. Cash Bank Date Particula V. L. Cash Bank
rs No F (Rs) (Rs) rs N F
o
4 sept By 6000
1 sept To 7500 2100 purchase
balance 0 13 s 2750
b/d sept By
8 sept To sales 3000 17 machiner 8700
sept y
16 To sales C 5000 2250 By
sept 20 purchase 550
sept s
27 To bank 24 By 750
sept sept stationer
27 y 5000
sept By Rohit
31 1250
sept By cash
31 1750
sept By rent
31 5050 6950
sept By
1550 salary 1550 2325
0 2325 By 0 0
0 balance
5050 c/d
6950

Oct 1 To
balance
b/d

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Books of original entry-
Special purpose subsidiary books:-
Purchase book or purchase journal
Purchase book records all the credit purchases of goods. It records only those
things in which a firm or Business organisation deals in.
Format of purchase book:-
Inpu Inpu Inpu
Total
Particu Invoice L. Purc t t t
Date Details Amou
- lars No. F -hase CGS SGS IGS
nt
T T T

Let's practice with a question:-

Enter the following transactions in the purchase book of superior cloth House,
New Delhi, assuming CGST @ 2.5% and SGST @ 2.5%.

2018
April 4 Purchased from rashi krishna & sons, of new Delhi, Vide invoice
no. 305.
100 meter cotton @ ₹200 per metre
80 metre woolen cloth @₹500 per metre
Trade discount 20%

April Purchased from Raghuraam parshad & Co. , of Kanpur, U. P. ,

12 Vide invoice no. 140
50 metre silk cloth @₹ 600/metre
40 metre cotton cloth @250/metre
Trade discount 10%

Purchased from stylish furniture house, Delhi:-

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 April 10 chairs @₹2, 000 per chair
20
Purchased form laal om and sons of Gujarat, vide invoice no. 308
100 metre woollen cloth @ ₹600 per metre
April Trade discount is 15% and freight charges payable are ₹ 3,000.
25

Ans:
Date Particulars Invoi L Detai Purcha Input Input Inp Total
ce . ls se CGS SGS ut amoun
No. F T T IGS t
T
2018 305 ₹
April Rashi krishna
4 & sons, New ,
Delhi
100 meter 20,0
cotton @ ₹200 00
per metre 40,0
80 metre 00
woolen cloth 60,0
@₹500 per 00
metre
12,0
Less : trade 00
discount@20% 48,0 48,000 12,0 12,0 50400
Add: CGST@ 00 00 00
2.5% 12,0
April SGST 00
12 @ 2.5 140 12,0
00
5040
0

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 Purchased
from
raghuraam
parshad & co.,
of kanpur, U.
P.,
50 metre silk
cloth @₹ 30,0
600/metre 00
40 metre cotton 1,80
cloth 36,000 0 37,800
@250/metre 10,0
April Less:Trade 139 00
25 discount 10% 40,0
Add: IGST @ 00
10%
4,00
0
36,0
Purchased 00
form laal om 1,80
and sons of 0
Gujarat, 37,8 51,000 2,55 53,550
100 metre 00 1,35,0 0 1,41,7
April woollen cloth 00 1,20 1,20 4,35 50
30 @ ₹600 per 0 0 0
metre
Less: Trade
discount is
15%
Add: IGST @ 60,0
15% 00
9,00
0
51,0
Total 00

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 2,55
0
53,5
50

Sales book:-
In the sales book, all credit sales of goods are recorded. Cash sales will be recorded
in the cash book, not in the sales book. Credit sales of things other than the goods
in which the firm deals in, are not recorded in the sales book.

Format of sales book:-

Date Particular Invoi L. F Detai Sale Outp Outp Outp Total
s ce ls ut ut ut Amo
No. CGS SGS IGS unt
T T T

Let’s do it with an example:-

2018
May 1 Sold goods to seven star furniture co., patiala(punjab), on
credit:-
150 chairs @₹ 1,800 each
36 tables @₹ 5,000 each
Discount 20%
May 15
Sold goods to rishal furniture house, Amritsar (punjab) :-

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 10 almirahs @₹ 11,000 each
5 sofa sets at ₹18, 000 each
May 20
Sold goods to akash furniture house, New Delhi :-
100 chairs @₹ 2,000 each
Less:5%
May 25
Sold to moonheight furniture co. For cash:-
50 chairs @₹ 1,900 each
May 28
Sold on credit to Sumit machinery store:-
2 old machineries @ ₹5, 000 per machine
1 old computer for ₹ 1,200

Ans:
Dat Particulars Invoi L. Detail Sale Outp Outp Outp Total
e ce F s ut ut ut amoun
no. CGS SGS IGST t
T T
201 seven star
8 furniture co.,
Ma patiala(punjab 2,70,0
y1 150 chairs @₹ 00
1,800 each
36 tables @₹ 1,80,0
5,000 each 00
Less : t. 4,50,0
d@20% 00
90,
Add : CGST@ 000 3,60 21,60 21,60 4,03,2
6% 3,60,0 ,0 0 0 0
SGST 00 00
@6% 21,600
Ma 21,600
y 15

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 4,03,2
00

Rishal
furniture
house,
Amritsar
10 almirahs at
11,000/-
5 sofa sets at ₹ 1,10,0
18000 each 00
1,70 10,20 10,20 1,90,0
Less : t. d 90,000 ,0 0 0 00
Ma @15% 2,00,0 00
y 20 00
Add: CGST 30,000
@ 6% 1,70,0
SGST 00
@6% 10,200
10,200 22,80
1,90,0 0
Akash 00 1,90 2,12,8
furniture ,0 00
house, New 00 22,80
Delhi, 31,80 31,80 0
100 chairs @ 7,20 0 0 8,06,4
₹2, 000 each ,0 00
Less: t. d @5% 2,00,0 00
00
Add: IGST @ 10,000
12% 1,90,0
00
22,800
Total

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Purchase return book:-
Purchase return book is used to record the return of such goods as were purchased
on credit basis.
This book is also known as the return outward book.

Format of purchase return book:-

Date Particulars Debit L. F Deta Purch Inp Inp Inp Total
Note ils ase ut ut ut Amou
Retur CG SG IGS nt
n ST ST T

SALE RETURN BOOK

Sale return book is used to record the return of such goods as were sold to the
customers on credit basis.
This book is also known as a return inward book.
Format of sale return book:
Date Particulars Credi L. F Deta Sale Outp Outp Outp Total
t ils Retu ut ut ut Amou
Note rn CGS SGS IGS nt
T T T

Journal proper:-
In the journal proper only those transactions are recorded which cannot be
recorded in any other subsidiary book. In such a case a journal is called a proper
journal.
Let's do it with an example:--

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Record the following transactions in the JOURNAL PROPER of m/s ramesh
traders
1. An old machinery sold to sailash for ₹ 5,000 on credit
2. Goods worth ₹20, 000 was destroyed by fire
3. A bills receivable for ₹20, 000 endorsed to Shwetha
Ans: Journal proper
Date Particulars L. Debit(in ₹) Credit(in ₹)
F
1. Sailash a/c 5,000
To machinery a/c 5,000
(Being old machinery sold on credit)
2. Loss by fire a/c 20,000
To purchases a/c 20,00
(Being goods destroyed by fire) 0
3. Shwetha a/c 20,000
To bills receivable a/c 20,00
(Being b/r endorsed) 0

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