Recording of Transactions-II – NCERT Class 11 Accountancy Financial Accounting Part I, Chapter 4 – Summary, Special Purpose Books, and Ledger Posting
Detailed guide to recording transactions using special purpose books (Cash Book, Purchases Book, Purchases Return Book, Sales Book, Sales Return Book, Journal Proper); covers petty cash systems, ledger posting, balancing, and examples for efficient accounting.
Updated: 8 months ago

Recording of Transactions - II
Chapter 4: Accountancy - Ultimate Study Guide | NCERT Class 11 Notes, Questions, Examples & Quiz 2025
Full Chapter Summary & Detailed Notes - Recording of Transactions - II Class 11 NCERT
Overview & Key Concepts
- Chapter Goal: Understand special purpose books for efficient recording of repetitive transactions. Exam Focus: Cash book preparation/balancing, special journals (purchases/sales/returns), posting to ledger, Journal Proper. 2025 Updates: Digital special books, integration with ERP. Fun Fact: Subsidiary books speed up accounting by 70%. Core Idea: Sub-divide journal into special books for volume efficiency. Real-World: Retail uses sales book daily. Ties: To Chapter 3 (Journal basics). Expanded: Need for special books, formats, contra entries, bank reconciliation hints. Global: IFRS allows subsidiary ledgers. Ethical: Accurate contra postings prevent fraud.
- Wider Scope: Economical division of labour; original entry + ledger function (cash book).
- Expanded Content: Cash book types, pay-in-slip/cheque/crossing, special books formats, posting rules, balancing.
Need for Special Purpose Books
- In Chapter 3, transactions recorded in journal then posted to ledger. Small business: One journal OK. Large: Cumbersome; sub-divide into special journals (daybooks/subsidiary books) for repetitive transactions e.g., cash in cash book, credit sales in sales book.
- Non-fitting: Journal Proper. Benefits: Quick, efficient, accurate; division of labour.
- Point: Repetitive nature; economical.
- Expanded: Example - All cash sales in cash book, credit purchases in purchases book.
4.1 Cash Book
- Records cash receipts/payments; starts with opening balance (monthly). Serves as journal + ledger (no separate cash account). Popular for all orgs.
Simple Example: Single Column Cash Book (Roopa Traders from PDF)
Simple Way: Left side receipts (like income), right side payments (like expenses). Balance = Receipts - Payments.
| Date | Receipts | L.F. | Amount ₹ | Date | Payments | L.F. | Amount ₹ |
|---|---|---|---|---|---|---|---|
| Nov 01 | Balance b/d | 30,000 | Nov 08 | Insurance | 6,000 | ||
| Nov 04 | Gurmeet | 12,000 | Nov 13 | Furniture | 13,800 | ||
| Nov 16 | Sales | 28,000 | Nov 17 | Purchases | 17,400 | ||
| Nov 27 | Sales | 18,200 | Nov 20 | Stationery | 1,100 | ||
| Total | 88,200 | Nov 24 | Rukmani | 12,500 | |||
| Nov 30 | Rent | 2,500 | |||||
| Nov 30 | Salary | 3,500 | |||||
| Nov 30 | Bank | 8,000 | |||||
| Nov 30 | Balance c/d | 23,400 | |||||
| Total | 88,200 | ||||||
| Dec 01 | Balance b/d | 23,400 |
Step-by-Step: 1. List all cash in (receipts). 2. List all cash out (payments). 3. Total both sides (must match). 4. Balance = Total receipts - Total payments (23,400 here).
Posting from Single Column Cash Book
Simple Way: Receipts side (left) - Credit those accounts in ledger (e.g., Gurmeet credited). Payments side (right) - Debit those accounts (e.g., Furniture debited).
Example Ledger Posting for Gurmeet:
| Date | Particulars | J.F. | Amount ₹ |
|---|---|---|---|
| Nov 04 | Cash | 12,000 (Cr.) |
4.1.2 Double Column Cash Book
- Two columns: Cash + Bank on each side. For large bank transactions; current account (no interest, incidental charges). Pay-in-slip (deposit form, Fig 4.2), Cheque (withdrawal, Fig 4.3), Crossing types (Fig 4.4: General, Special, A/c Payee, Not Negotiable).
- Contra (C): Cash to bank or vice versa - both sides, not posted to ledger.
- Dishonour: Reverse entry in bank column. Bank charges: Debit bank column.
Simple Example: Double Column Cash Book (M/s Tools India from PDF)
Simple Way: Separate cash and bank columns. Contra: Cash withdrawn for office - Dr. Cash, Cr. Bank (or vice versa).
| Date | Receipts Cash | Bank | Date | Payments Cash | Bank |
|---|---|---|---|---|---|
| Sept 01 | Balance b/d 15,000 | 42,000 | Sept 04 | Purchases 12,000 | |
| Sept 08 | Sales 6,000 | Sept 13 | Machine 5,500 | ||
| Sept 16 | Sales 4,500 | Sept 17 | Purchases 17,400 | ||
| Sept 27 | Bank C 10,000 | Sept 20 | Stationery 1,100 | ||
| Total 31,000 | 46,500 | Sept 24 | Rohit 1,500 | ||
| Sept 27 | Cash C 10,000 | ||||
| Sept 30 | Salary 3,500 | ||||
| Sept 30 | Rent 2,500 | ||||
| Sept 30 | Balance c/d | ||||
| 10,100 | 13,900 | ||||
| Total 31,000 | 46,500 | ||||
| Oct 01 | Balance b/d 10,100 | 13,900 |
Step-by-Step: 1. Record cash/bank in/out separately. 2. Contra marked 'C' (e.g., Sept 27: Cash withdrawn 10,000 - receipt in cash, payment in bank). 3. Balance each column independently. 4. Post non-contra: Receipts left - credit accounts; Payments right - debit accounts.
Other Special Purpose Books (Brief from Chapter)
- Purchases Book: Credit purchases of goods (excluding cash). Format: Date, Invoice No., Supplier, Particulars, Amount. Total posted to Purchases A/c (Dr.), suppliers credited individually.
- Purchases Return Book: Goods returned to suppliers (debit note). Total to Purchases Return A/c (Cr.), suppliers debited.
- Sales Book: Credit sales. Total to Sales A/c (Cr.), customers debited.
- Sales Return Book: Goods returned by customers (credit note). Total to Sales Return A/c (Dr.), customers credited.
- Journal Proper: Adjusting entries, non-special transactions (e.g., depreciation, bad debts).
Summary
- Special books for efficiency; cash book dual role; contra entries; posting rules maintain double-entry.
- Benefits: Speed, accuracy, labour division.
Why This Guide Stands Out
Complete: All special books, examples with steps, 60 Q&A, quiz. Accountancy-focused. Free 2025.
Key Themes & Tips
- Aspects: Repetitive recording, formats, balancing, posting.
- Thinkers: Division of labour principles.
- Tip: Practice balancing cash book; mark contra 'C'; post totals individually.
Exam Case Studies
Prepare cash book from transactions; post to ledger; explain special books.
Project & Group Ideas
- Simulate special books for a retail business.
- Discuss cheque crossing safety.



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