{"id":22871,"date":"2021-05-13T17:21:56","date_gmt":"2021-05-13T11:51:56","guid":{"rendered":"https:\/\/mcq-questions.com\/?p=22871"},"modified":"2022-03-02T10:40:51","modified_gmt":"2022-03-02T05:10:51","slug":"ncert-solutions-for-class-11-accountancy-chapter-4","status":"publish","type":"post","link":"https:\/\/mcq-questions.com\/ncert-solutions-for-class-11-accountancy-chapter-4\/","title":{"rendered":"NCERT Solutions for Class 11 Accountancy Chapter 4 Recording of Transactions 2"},"content":{"rendered":"

Detailed, Step-by-Step NCERT Solutions for 11 Accountancy<\/a> Chapter 4 Recording of Transactions 2 Questions and Answers were solved by Expert Teachers as per NCERT (CBSE) Book guidelines covering each topic in chapter to ensure complete preparation.<\/p>\n

Recording of Transactions 2 NCERT Solutions for Class 11 Accountancy Chapter 4<\/h2>\n

Recording of Transactions 2 Questions and Answers <\/span>Class 11 Accountancy Chapter 4<\/h3>\n

Test Your Understanding – I<\/span><\/p>\n

Select the Correct Answer :
\n(a) When a firm maintains a cash book, it need not maintain :
\n(i) Journal Proper
\n(ii) Purchases (journal) book
\n(iii) Sales (journal) book
\n(iv) Bank and cash account in the ledger
\nAnswer:
\n(iv) Bank and cash account in the ledger<\/p>\n

(b) Double column cash book records :
\n(i) All transactions
\n(ii) Cash and bank transactions
\n(iii) Only cash transactions
\n(iv)Only credit transactions
\nAnswer:
\n(ii) Cash and bank transactions<\/p>\n

\"NCERT<\/p>\n

(c) Goods purchased on cash are recorded in the :
\n(i) Purchases (journal) book
\n(ii) Sales (journal) book
\n(iii) Cash book
\n(iv) Purchases return (journal) book
\nAnswer:
\n(iii) Cash book<\/p>\n

(d) Cash book does not record transaction of:
\n(i) Cash nature
\n(ii) Credit nature
\n(iii) Cash and credit nature
\n(iv) None of these
\nAnswer:
\n(ii) Credit nature<\/p>\n

(e) Total of these transactions is posted in purchase account:
\n(i) Purchase of furniture
\n(ii) Cash and credit purchase
\n(iii) Purchases return
\n(iv) Purchase of stationary
\nAnswer:
\n(ii) Cash and credit purchase<\/p>\n

(f) The periodic total of sales return journal is posted to :
\n(i) Sales account
\n(ii) Goods account
\n(iii) Purchases return account
\n(iv) Sales return account
\nAnswer:
\n(iv) Sales return account<\/p>\n

\"NCERT<\/p>\n

(g) Credit balance of bank account in cash book shows :
\n(i) Overdraft
\n(ii) Cash deposited in our bank
\n(iii) Cash withdrawn from bank
\n(iv) None of these
\nAnswer:
\n(i) Overdraft<\/p>\n

(h) The periodic total of purchases return journal is posted to :
\n(i) Purchase account
\n(ii) Profitand loss account
\n(iii) Purchase returns account
\n(iv) Furniture account
\nAnswer:
\n(iii) Purchase returns account<\/p>\n

(i) Balancing of account means :
\n(i) Total of debit side
\n(ii) Total of credit side
\n(iii) Difference in total of debit & credit
\n(iv) None of these
\nAnswer:
\n(iii) Difference in total of debit & credit<\/p>\n

\"NCERT<\/p>\n

Test Your Understanding – II<\/span><\/p>\n

Question 1.
\nFill in the Correct Words :
\n(a) Cash book is a ……………….. journal.
\n(b) In Journal proper, only ……………… discount is recorded.
\n(c) Return of goods purchased on credit to the suppliers will be entered in ……………… Journal.
\n(d) Assets sold on credit are entered in ………………
\n(e) Double column cash book records transaction relating to ……………… and ………………
\n(f) Total of the debit side of cash book is ……………… than the credit side.
\n(g) Cash book does not| record the ……………… transactions.
\n(h) In double column cash book ……………… transactions are also recorded.
\n(i) Credit balance shown by a bank column in cash book is
\n(j) The amount paid to the petty cashier at the beginning of a period is known as ……………… amount.
\n(k) In purchase book goods purchased on ……………… are recorded.
\nAnswer:
\n(a) Subsidiary
\n(b) Cash
\n(c) Purchases Return
\n(d) Journal Proper
\n(e) Cash, Bank
\n(f) More
\n(g) Credit
\n(h) Bank
\n(i) Overdraft
\n(j) Imprest
\n(k) Credit<\/p>\n

Question 2.
\nState whether the following statements are True or False :
\n(a) Journal is a book of secondary entry.
\n(b) One debit account and more than one credit account in a entry is called compound entry.
\n(c) Assets sold, on credit are entered in sales journal.
\n(d) Cash and credit purchases are entered in purchase journal.
\n(e) Cash sales are entered in sales journal.
\n(f) Cash book records transactions relating to receipts and payments.
\n(g) Ledger is a subsidiary book.
\n(h) Petty cash book is a book having record of big payments.
\n(i) Cash received is entered on the debit side of cash book.
\n(j) Transaction recorded both on debit and credit side of cash book is known as contra entry.
\n(k) Balancing of account means total of debit and credit side.
\n(l) Credit purchase of machine is entered in purchase journal.
\nAnswer:
\n(a) False
\n(b) True
\n(c) False
\n(d) False
\n(e) False
\n(f) True
\n(g) True
\n(h) False
\n(i) True
\n(j) True
\n(k) False
\n(l) False<\/p>\n

\"NCERT<\/p>\n

Short Answer Type Questions
\n<\/span><\/p>\n

Question 1.
\nBriefly state how the Cash Book is both journal and a ledger.
\nAnswer:
\nPractically, it is difficult to record all the transactions in only one books of prime entry.
\nFor convenience, the journal is divided into number of subsidiary books. The cash transactions relating to
\nreceipts and payments from journal are recorded in cash book.<\/p>\n

The number of cash transactions in a business is generally large and, therefore, it becomes convenient to have a separate cash book, to record such transaction. Cash Book is a Special Journal. Cash transactions firstly are recorded in cash books and on the basis of such a record, ledger accounts are prepared. Therefore, the cash book is a subsidiary book. But, the cash book itself serves as the cash account and bank account.<\/p>\n

As a matter of fact, balances are entered in the Trial Balance directly. The cash book, therefore, is part of ledger also. Hence, it is treated as the Principal Book. The cash book is, thus both a subsidiary book and a principal book i.e. Journal and Ledger both.<\/p>\n

Question 2.
\nWhat is the purpose of Contra Entry?
\nAnswer:
\nSome transactions are recorded in two-column cash book which relates to both cash and bank i.e. balance of one will decrease and other will increase due to such transactions or vice versa. Such transactions are entered on both the sides of cash book. Such entries are known as Contra Entries. The purpose of entering contra transactions is the entry of both cash and bank transaction on receipt and payment side in two situations<\/p>\n