NCERT Book Class 11 Accountancy Chapter 4 Recording of Transactions - II

Recording of Transactions-II 4

I n chapter 3, you learnt that all the
business transactions are first recorded in the
journal and then they are posted in the ledger
accounts. A small business may be able to record
all its transactions in one book only, i.e., the journal.
But as the business expands and the number of
transactions becomes large, it may become
cumbersome to jour-nalise each transaction. For
quick, efficient and accurate recording of business
transactions, Journal is sub-divided into special
journals. Many of the business transactions are
repetitive in nature. They can be easily recorded in
LEARNING OBJECTIVES
special journals, each meant for recording all the
After studying this transactions of a similar nature. For example, all
chapter, you will be able
cash transactions may be recorded in one book, all credit
to :
sales transactions in another book and all credit
• state the need for
special purpose books;
purchases transactions in yet another book and so on.
These special journals are also called daybooks or
• record the transactions
in cash book and post
subsidiary books. Transactions that cannot be recorded
them in the ledger; in any special journal are recorded in journal called the
• prepare the petty cash Journal Proper. Special journals prove economical and
book; make division of labour possible in accounting work. In
• record the transactions this chapter we will discuss the following special purpose
in the special purpose books:
books; • Cash Book
• post the entries in the • Purchases Book
special purpose book
and to the ledger; • Purchases Return (Return Outwards) Book
• balance the ledger
• Sales Book
accounts. • Sales Return (Return Inwards) Book
• Journal Proper