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Chapter-3. Recording of transaction-I Accounts class 11 in english Medium CBSE Notes
CBSE Class 11 Accounts Notes in English Medium based on latest NCERT syllabus, covering definitions, diagrams, formulas, and exam-oriented explanations.
3. Recording of transaction-I
Journal and Ledger
JOURNAL AND LEDGER
JOURNAL - Journal is a book of prime entry or book of original entry in which transactions are first recorded in chronological order.
FEATURES OF A JOURNAL -
- It shows complete record of transactions.
- It is a book of original entry in which transactions are first recorded.
- Day to day transactions are recorded in a journal in chronological order.
- It records both aspects of a transaction i,e. debit and credit.
ADVANTAGES OF JOURNAL -
- It helps to provide accounting data in chronological order.
- It reduces possibility of errors by recording transactions both sides debit as well as credit.
- It provides explanations of transactions along with recording in journal for better understanding of transactions.
- It hepls in ledger posting of transactions.
- It ensures arthmetical accuracy.
- Classification of all transactions become easier.
LIMITATIONS OF JOURNAL -
- It is unsuitable for large volume of transactions.
- It is not a simple system of recording of transactions.
- It is not a substitute of ledger.
- It is time consuming process.
- It does not facilitate internal control, because in journa,l transactions are recorded in chronological order.
FORMAT OF JOURNAL -
|
Date |
Particulars |
L.F. |
Dr.(amount) |
Cr.(amount) |
|
|
|
|
|
|
Journal is divided into 5 columns. These are as follows -
1. Date
2. Particulars
3. Ledger Folio
4. Debit Amount
5. Credit Amount
Example - Mr. A started business and introduced capital of rs. 5,00,000.
the transaction is recorded by passing following journnal entry :
|
Date |
Particulars |
L.F. |
Dr(amount) |
Cr(amount) |
|
|
Bank A/c Dr... To Capital A/c |
|
5,00,000
|
5,00,000 |
LEDGER -
- Means a book which contains, in a summerisedand and classified record of all transactions.
- Ledger is called principal book of account.
- Ledger is called book of final entry.
FEATURES OF LEDGER -
- It is prepred from journal.
- Trial balance and final accounts are prepared from ledger accounts.
- Ledger accounts shows current balances of all accounts.
- Ledger is a master record of all transactions
- It holds relevent informations at one place relating to a particular account.
UTILITY OF LEDGER -
- ledger helps to prepare a separate account for each income and expense.
- It provides complete information about a particular account.
- It helps in prepration of trial balance.
- It also helps in prepration of final accounts. I,e. trading A/c, P&L A/c and balance sheet.
FORMAT OF LEDGER ACCOUNT -
Dr. Cr.
|
Date |
Particulars |
J.F. |
Amount(Rs.) |
Date |
Particulars |
J.F. |
Amount(Rs.) |
|
|
|
|
|
|
|
|
|
See other sub-topics of this chapter: