NCERT Book Class 11 Accountancy Chapter 3 Recording of Transactions - I

46 Accountancy

Recording of Transactions-I 3

I n chapter 1 and 2, while explaining the
development and importance of accounting as a
source of disseminating the financial information
along with the discussion on basic accounting
concepts that guide the recording of business
transactions, it has been indicated that accounting
involves a process of identifying and analysing the
business transactions, recording them, classifying
L EARNING O BJECTIVES and summarising their effects and finally
communicating it to the interested users of
After studying this accounting information.
chapter, you will be able
to: In this chapter, we will discuss the details of each
• describe the nature of
step involved in the accounting process. The first
transaction and source step involves identifying the transactions to be
documents; recorded and preparing the source documents
• explain the prepa- which are in turn recorded in the basic book of
ration of accounting original entry called journal and are then posted to
vouchers; individual accounts in the principal book called
• apply accounting ledger.
equation to explain the
effect of transactions; 3.1 Business Transactions and Source Document
• record transactions
using rules of debit After securing good percentage in your previous
and credit; examination, as promised, your father wishes to
• explain the concept of buy you a computer. You go to the market along
book of original entry with your father to buy a computer. The dealer gives
and recording of a cash memo along with the computer and in
transactions in journal; exchange your father makes cash payment of
• explain the concept of ` 35,000. Purchase of computer for cash is an
ledger and posting of example of a transaction, which involves reciprocal
journal entries to the
exchange of two things: (i) payment of cash,
ledger accounts.
(ii) delivery of a computer. Hence, the transaction