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CBSE

Class 11 Important Question

Accountancy

Chapter 3: Recording Of Transactions 1

Important Questions for CBSE Class 11 Accountancy Chapter 3 - Recording of Transactions 1

Q: 2. How are the modern rules of Debit and Credit applied to different types of accounts?

The modern approach, based on the Accounting Equation, classifies accounts into five types. The rules for debit and credit are crucial for exams:Assets: Increase is Debit, Decrease is Credit.Liabilities: Increase is Credit, Decrease is Debit.Capital: Increase is Credit, Decrease is Debit.Expenses/Losses: Increase is Debit, Decrease is Credit.Revenue/Gains: Increase is Credit, Decrease is Debit.Mastering this table is essential for passing correct journal entries.

Q: 3. Why is the Journal called the 'Book of Original Entry' and the Ledger the 'Principal Book of Accounts'?

This is a key conceptual question. The Journal is called the 'Book of Original Entry' because transactions are first recorded here in chronological order as soon as they occur. The Ledger, on the other hand, is the 'Principal Book of Accounts' because it is the ultimate destination for all transactions. It classifies and summarises the journal entries into individual accounts, providing a complete picture of the financial position of each account (e.g., Cash, Sales, a specific Debtor) at a glance.

CBSE Class 11 Accountancy Important Questions Chapter 3 - Recording of Transactions 1 - Free PDF Download

Free PDF download of Important Questions with solutions for CBSE Class 11 Accountancy Chapter 3 - Recording Of Transactions 1 prepared by expert Accountancy teachers from latest edition of CBSE(NCERT) books.

Study Important Questions for Class 11 Accountancy Chapter 3 - Recording of Transactions - I

A. Very Short Answer Questions - 1 Marks

1. What do you means by journal?

Ans: After the transaction has been identified, it is recorded and a document known as a journal is created.

2. Define ledger account in accounting terms.

Ans: The ledger is the book of accounts in which specific transactions are documented. Journal Entries are posted into ledger accounts.

3. Choose the correct option from the following:

A. Capital= Liabilities + Asset

B. Capital = Asset - Liabilities

C. Asset =Capital - Liabilities

D. Liabilities= Capital +Assets

Ans: Option B Capital = Asset - Liabilities is correct, as capital means asset minus liabilities.

4. ______________is prepared form of documentary evidence.

A. Ledger

B. Journal

C. Capital

D. Cash book

Ans: Journal is the prepared form of documentary evidence. So, the correct option is B. Journal.

5. Choose the correct option:

A. One debit; two credit

B. Two debit; Two credit

C. One credit; one debit

D. One credit; two debit

Ans: Option D One credit; one debit is the correct option. Account has one credit and one debit side.

2. Short Answer Questions - 2 Marks

1. Which transaction should be first recorded journal and ledger? State the reason.

Ans: The transaction is first recorded in the journal, and then transmitted to the ledger account. After the transaction has been identified, it is recorded and a document known as a journal is created. The information is then posted to individual accounts, which are referred to as ledgers.

2. Give Format of ledger with details.

Ans:

Ledger Account

Date	Particular	J. F.	Amount (Dr.)	Date	Particular	J. F.	Amount (Cr.)
	To Bal c/d		-				-
			-		By Bal b/d		-
			-				-

3. Give Format of journal with details.

Ans:

Journal Entries

Date

Particulars

L.F

Debit Amount

(in Rs.)

Credit Amount

(in Rs.)

4. Give debit and credit rules of Liabilities/Revenue (Gains)?

Ans: Liabilities and capital/revenue (gains) changes are recorded in the following ways:

As the amount of liabilities "increases," it is credited, and as the number of liabilities "decreases," it is debited.
Amounts are credited as capital "increases" and debited as capital "decreases."
Amounts are credited as revenue "increases" and debited as revenue "decreases."

5. Give debit and credit rules of Assets/Expenses (Losses)?

Ans: Recording changes in Assets/Expenses (Losses):

As the asset "increases" amount is debited, as the assets" decreases" amount is credited.
As the expenses (losses) "increases" amount is debited, as the expenses (losses) "decreases" amount is credited.

C. Short Answer Questions - 3 Marks

1. Give the types of journal into books of original entry.

Ans: The subdivision of journal into numbers of books of original entry are as follows:

Journal proper
Cash book

Other day books:

i. Sales book (Journal)

ii. Purchase book (Journal)

iii. Sales return book (Journal)

iv. Purchase return book (Journal)

v. Bills payable book (Journal)

vi. Bills receivable book (Journal)

2. Why accounting vouchers are prepared?

Ans: Accounting vouchers are ready for the accounting purpose that are useful throughout the time of creating monetary statements by the auditor and through the assessment of tax. Currently everything is computerized thus all the relevant vouchers are ready in computerized format. The dealings that show one debit and one credit is a simple way to prepare accounting vouchers. If there are multiple vouchers of debit and credit these transactions are referred to as complicated transactions. complicated vouchers are referred to as journal vouchers. The format of the accounting voucher depends upon its nature and demand of knowledge required to be mentioned.

3. Give specimen of Credit Voucher

Ans:

Credit Voucher

Firm Name

Date Voucher No:

Debit account:

Amount:

Sr. Code Account name Amount(in Rs.) Particular

No.

Authorised By: Prepared By:

4. Give specimen of Debit Voucher?

Ans:

Credit Voucher

Firm Name

Date Voucher No:

Credit account:

Amount:

Sr. Code Account name Amount(in Rs.) Particular

No.

Authorised By: Prepared By:

5. Give essentials of accounting vouchers?

Ans: The essentials of accounting vouchers are:

It must be written in good quality paper.
Firm's name ought to be written on top of the vouchers.
Each date of dealing and date of recording of transactions should be mentioned.
Serial range of the voucher should be stuffed.
Name of the account that is to be debited or attributable ought to be mentioned.

D. Long Answer Questions - 5 Marks

1. Explain rules of debit and credit?

Ans: All accounts are distributed mainly into five categories for recording of transaction:

i. Asset: Asset is the resources of the business through which it earns income.

ii. Liabilities: Liabilities are the obligations over the corporate which require to be paid off.

iii. Capital: Capital of the corporate suggests that the amount of cash that is used to start out the corporate.

iv. Expenses/Losses: Expenses incur within the method of earning revenue.

v. Revenue/Gains: Revenue is the financial gain earned by the corporation in the course of one financial year.

Basic two fundamental rules are followed for these accounts:

a. Recording changes in Assets/Expenses (Losses):

As the asset "increases" amount is debited, as the assets" decreases" amount is credited.
As the expenses(losses) "increases" amount is debited, as the expenses(losses) "decreases" amount is credited

b. Recording changes in Liabilities and capital/revenue (gains):

As the liabilities "increases" amount is credited, as the liabilities "decreases" amount is debited.
As the capital "increases" amount is credited, as the capital" decreases" amount is debited.
As the revenue "increases" amount is credited, as the revenue " decreases" amount is debited.

2. Pass the following Journal entries:

May 02, 2019:- Goods purchased from Rajesh for Rs. 59,000
May 06, 2019:- Goods Sold to Narmada for Rs. 24,000
May 12, 2019:- Insurance premium paid by cheque of Rs. 35,000
May 18, 2019:- Cheques received from Manu of Rs. 16,000
May 24, 2019:- Sam paid Rs. 14,000 in cash
May 25, 2019:- Payment of salary made in cash for Rs. 24,000
May 30,2019:- Goods purchased from John on credit for Rs. 32,000

Ans:

Journal Entries

Date 2019	Particulars	L.F	Debit Amount (in Rs.)	Credit Amount (in Rs.)
May. 01	Purchase A/c Dr. To Rajesh A/c (Being goods purchased from Rajesh)		59,000	59,000
May. 06	Narmada A/c Dr. To sales A/c (Being goods sold to Narmada)		24,000	24,000
May. 12	Insurance A/c Dr. To bank A/c (Goods insurance premium paid)		35,000	35,000
May. 18	Bank A/c Dr. To Manu (Being cheque received from Manu)		16,000	16,000
May. 24	Cash A/c Dr. To Sam A/c (Being Sam paid amount in cash)		15,009	15,009
May. 25	Salary A/c Dr. To Cash A/c (Being Sam paid amount in cash)		24,000	24,000
May. 30	Purchases A/c Dr. To John A/c (Being goods purchased on credit)		32,000	32,00

3. Define ledger accounts and draw cash ledger format.

Ans: The ledger is a book of accounts in which specific transactions are documented. The ledger holds all credit, debit, account, and journal information that will come in handy later. Each account in a ledger account is kept on its own page or combined.

Ledgers are important documents for accounting purposes, as it helps to find out how many types of transactions are made in single. For the purpose of easy posting and location accounts are generally opened in ledger. For big organizations the ledger account register contains indexes which make it much easier to find out the details quickly. Following is the format for ledger account of Cash:

Cash Account

Date	Particular	J. F.	Amount(Dr.)	Date	Particular	J. F.	Amount(Cr.)
	To Capital		-		By Bank		-
					By Purchase		-
					By Cartage		-

4. Pass following journal entries and post ledger account.

Dec 01, 2019:- Capital introduced to start business with Rs. 1,50,000,
Dec 03, 2019:- Bank account opened with SBI in the name of company for Rs. 30,000.
Dec 09, 2019:- Goods purchased from Nike for Rs. 26,400 in cash.
Dec 11, 2019:- Credit sales made to M/S David Enterprises India for Rs. 12,657.
Dec 12, 2019:- Payment made for cartage of Rs 15,109.

Ans:

Journal Entries

Date 2019	Particular	L.F	Debit Amount (in Rs.)	Credit Amount (in Rs.)
Dec. 01	Cash A/c Dr. To Capital A/c (Being capital introduced in business)		1,00,000	1,00,000
Dec. 03	Bank A/c Dr. To Cash A/c (Being current account open with SBI bank)		30,000	30,000
Dec. 09	Purchase A/c Dr. To Cash A/c (Goods purchased for cash)		26,400	26,400
Dec. 11	M/s David Dr. To Credit sales (Being credit sales made to M/s David Enterprise)		12,657	12,657
Dec. 12	Cartage A/c Dr. To Cash A/c (Being Cash paid for cartage )		15,009	15,009

Ledger Accounts

Cash Account

Date	Particular	J. F.	Amount (Dr.)	Date	Particular	J. F.	Amount (Cr.)
	To Capital		1,00,000	Dec 3	By Bank		30,000
				Dec 9	By Purchase		26,400
				Dec 12	By Cartage		15,009

Capital Account

Date

Particular

J.F.

Amount

(Dr.)

Date

Particular

J.F.

Amount

(Cr.)

Dec 1

By Capital

1,00,000

Bank Account

Date

Particular

Amount

(Dr.)

Date

Particular

Amount

(Cr.)

Dec 3

To Cash

30,000

Purchase Account

Date

Particular

Amount

(Dr.)

Date

Particular

Amount

(Cr.)

Dec 9

To Cash

26,400

Cartage Account

Date

Particular

Amount

(Dr.)

Date

Particular

Amount

(Cr.)

Dec 12

To Sales

15,009

David Enterprises Account

Date

Particular

Amount

(Dr.)

Date

Particular

Amount

(Cr.)

Dec 11

To Sales

12,657

Sales Account

Date

Particular

Amount

(Dr.)

Date

Particular

Amount

(Cr.)

Dec 11

By David enterprises

12,657

5. Discuss complete procedure of posting journal to ledger account.

Ans: Posting the entries could be a method of transferring the entries from journal to ledger. Posting is completed to gather the information at one place for the conclusion and any accounting method. the entire method of posting journal to ledger account is as follows:

i. Ledger is located; the account which is to be debited is entered in the journal.

ii. Date column is used to enter the date of the transaction.

iii. In particular columns the account name is written through which account is debited in the journal.

iv. A Folio column is used to enter the page number and in the journal page number is written for the particular account.

v. Enter the relevant amount within the accounting of the column. Same procedure is employed to form an entry on the accounting system.

Related Study Materials for Class 11 Accountancy Chapter 3 Recording of Transactions 1

S. No	Study Materials for Class 11 Accountancy Chapter 3 Recording of Transactions 1
1.	CBSE Class 11 Accountancy Chapter 3 Recording of Transactions 1 Solutions
2.	CBSE Class 11 Accountancy Chapter 3 Recording of Transactions 1 Notes

CBSE Class 11 Accountancy Chapter-wise Important Questions

CBSE Class 11 Accountancy Chapter-wise Important Questions and Answers cover topics from all 9 chapters, helping students prepare thoroughly by focusing on key topics for easier revision.

S. No	Chapter-wise Important Questions for Class 11 Accountancy (Financial Accounting Part I)
1	Chapter 1 - Introduction to Accounting Important Question
2	Chapter 2 - Theory Base of Accounting Important Question
3	Chapter 4 - Recording of Transactions 2 Important Question
4	Chapter 5 - Bank Reconciliation Statement Important Question
5	Chapter 6 - Trial Balance and Rectification of Errors Important Question
6	Chapter 7 - Depreciation, Provisions & Reserves Important Question
Chapter-wise Important Questions for Class 11 Accountancy (Financial Accounting Part II)
7	Chapter 8 - Financial Statements- 1 Important Question
8	Chapter 9 - Financial Statements- 2 Important Question

Additional Study Materials for Class 11 Accountancy

S. No	Study Material for Class 11 Accountancy
1.	CBSE Class 11 Accountancy NCERT Books
2.	CBSE Class 11 Accountancy Important Questions
3.	CBSE Class 11 Accountancy NCERT Solutions
4.	CBSE Class 11 Accountancy Notes
5.	CBSE Class 11 Accountancy Sample Papers
6.	CBSE Class 11 Accountancy Syllabus

FAQs on Important Questions for CBSE Class 11 Accountancy Chapter 3 - Recording of Transactions 1

1. What are some expected long-answer questions from Chapter 3, Recording of Transactions 1, for the CBSE Class 11 Accountancy exam?

For the 2025-26 board exams, important long-answer questions from this chapter typically involve the complete accounting cycle. Students should focus on questions that require them to:

Analyse a series of transactions and pass the necessary Journal entries.
Post these journal entries into their respective Ledger accounts.
Prepare a Trial Balance from the ledger balances (although Trial Balance is covered in detail later, its basics are linked here).
Explain the entire process of posting from journal to ledger with a hypothetical example.

These questions test the fundamental understanding of the recording process.

2. How are the modern rules of Debit and Credit applied to different types of accounts?

The modern approach, based on the Accounting Equation, classifies accounts into five types. The rules for debit and credit are crucial for exams:

Assets: Increase is Debit, Decrease is Credit.
Liabilities: Increase is Credit, Decrease is Debit.
Capital: Increase is Credit, Decrease is Debit.
Expenses/Losses: Increase is Debit, Decrease is Credit.
Revenue/Gains: Increase is Credit, Decrease is Debit.

Mastering this table is essential for passing correct journal entries.

3. Why is the Journal called the 'Book of Original Entry' and the Ledger the 'Principal Book of Accounts'?

This is a key conceptual question. The Journal is called the 'Book of Original Entry' because transactions are first recorded here in chronological order as soon as they occur. The Ledger, on the other hand, is the 'Principal Book of Accounts' because it is the ultimate destination for all transactions. It classifies and summarises the journal entries into individual accounts, providing a complete picture of the financial position of each account (e.g., Cash, Sales, a specific Debtor) at a glance.

4. What are the most important subsidiary books a student must prepare for in Class 11 Accountancy exams?

Subsidiary books, or special journals, are an important topic. Students should be prepared to create and post from the following books:

Cash Book: For all cash and bank transactions (including single, double, and triple column formats).
Purchases Book: For recording all credit purchases of goods.
Sales Book: For recording all credit sales of goods.
Purchases Return Book: For goods returned to suppliers.
Sales Return Book: For goods returned by customers.
Journal Proper: For entries that cannot be recorded in any other subsidiary book, such as opening entries, closing entries, and rectification entries.

5. What are some common mistakes to avoid while posting from the Journal to the Ledger?

To score full marks, students must avoid these common errors:

Posting to the wrong side of an account (e.g., debiting instead of crediting).
Posting the wrong amount, often due to transcription errors.
Omitting to post an entry entirely from the journal to the ledger.
Posting the same journal entry twice in the ledger.
Not writing the correct page number in the Journal Folio (J.F.) and Ledger Folio (L.F.) columns, which hinders cross-referencing.

6. How does the concept of 'Source Documents' form the bedrock of the entire transaction recording process?

Source documents are the physical proof or evidence of a business transaction. Their importance is fundamental because:

They provide objective evidence that a transaction has occurred, preventing fraud and errors.
They contain all necessary details for recording, such as the date, amount, parties involved, and nature of the transaction.
They serve as a legal and auditable record for verification by auditors and tax authorities.

Without a valid source document (like an invoice, cash memo, or receipt), a transaction is generally not recorded in the books of accounts.

7. What is the difference between a trade discount and a cash discount in a journal entry?

This is a frequent point of confusion and an important exam topic.

A Trade Discount is a reduction in the list price of goods, offered by a seller to a buyer. It is not recorded in the books of accounts; the transaction is recorded at the net amount (List Price - Trade Discount).
A Cash Discount is an incentive for prompt payment. It is offered if the buyer pays within a stipulated period. Unlike a trade discount, a cash discount is always recorded in the books. It is treated as an expense for the party giving it (Discount Allowed) and an income for the party receiving it (Discount Received).

8. What is the correct approach to analyse a complex transaction before passing a journal entry?

For complex transactions, a systematic approach is key. Follow these steps to ensure accuracy:

Step 1: Identify the accounts involved in the transaction (minimum of two).
Step 2: Classify each account into its type: Asset, Liability, Capital, Expense, or Revenue.
Step 3: Determine whether each account is increasing or decreasing due to the transaction.
Step 4: Apply the rule of debit and credit based on the account type and its movement (increase/decrease).
Step 5: Ensure that the total debit amount equals the total credit amount before finalising the entry.