DK Goel Solutions Class 11 Chapter 11 Books of Original Entry Cash Book

1. DK Goel Solutions Class 11 Chapter 11 Books of Original Entry Cash Book DK Goel Accountancy Class 11 Solutions Chapter 11 Books of Original Entry – Cash Book which is laid out by master Accountancy instructors from the most recent adaptation of DK Goel Class 11 Accountancy books. We at Dk Goel Solutions help Students to fathom every one of the speculations specifically. There are various ideas in Accountancy, however the ideas of Trial Balance, Depreciation and Bank Reconciliation Statement (BRS) are required. DK Goel Solutions Class 11 – Chapter 11 Short Answer Questions for DK Goel Solutions Class 11 Chapter 11 Question 1: What is Sub-division of Journal?

2. Solution 1: For any type of transactions, it is useful to keep a different book, one to record cash transactions, another to record credit purchases of goods, and still another to record credit sales of goods. All these books ( DK Goel Solutions Class 11 Chapter 11 )are referred to as initial entry books or main entry books or subsidiary books - it is a special type of Journal, a Journal sub-division. Question 2: Name the various books of original entries. Solution 2: Original entries are recorded in the below books:- 1. Cash Book 2. Purchases Book 3. Sales Book 4. Purchases Return Book 5. Sales Return Book 6. Bills Receivable Book 7. Bills Payable Book 8. Journal Proper Question 3: Elucidate the following statements:- (a) ‘Only cash transactions are recorded in Cash Book’. (b) ‘Cash Book is both Journal and Ledger’. Solution 3: (a) Only monetary transactions are reported in the Cash Book, since this book documents only cash or bank-related transactions. The cash book almost still reflects a debit balance. Since cash transfers cannot surpass cash receipts, the cash column in the cash book cannot display a credit balance. If the overall cash receipt is equal to the total bill, it will display zero balance at most. (b) As cash Book is a book in which all transactions relating to cash receipts and cash transfers are registered, Cash Book is both Journal and Ledger. At the start of the cycle, it begins with cash or bank accounts. Question 4: How does a Cash Book serve ‘Dual Purpose’? Solution 4: As an original book and a ledger, the Cash book plays both roles. The Cash Book serves the dual purpose of the original entry or both books and the Ledger. If we create a cash book, there is no need to create a separate cash account. A transaction is recorded in a cash book or cash account only if there is either cash inflow or cash outflow. The cash book therefore has a dual purpose.

3. Question 5: What is Contra entry? How will you recognise it from among other entries in Cash Book? Solution 5: Some transactions are reported in a Two-Column Cash Book that refers to both cash and money, i.e. the balance of one will drop and, owing to such transactions, the other will increase. Certain transactions are entered on all sides of the Cash Book. Against such entries, the letter 'C' is written in the L.F. column to indicate that these are contra transactions and are not posted into the Ledger Account. (a) Cash deposited into the Bank 10,000 (b) Cash withdrawn from Bank for Office Use 1,000 Question 6: State three advantages of Sub-Division of Journal. Solution 6: The three advantages of Sub-Division of Journal are:- (i) Division of work by capacity. (ii) Ease of posting. (iii) Save Time Question 7: Explain how the following transactions would be recorded in a Cash Book with Cash and Bank Columns? (i) Deposit of Cash into Bank (ii) Withdrawal of money from Bank for office use. (iii) Deposit of cheque (received from other) into Bank. (iv) Dishonour of cheque deposited into Bank. Solution 7: (i) Deposit of Cash into Bank:- In the aforementioned trade, a cash account and a bank account are also influenced by the account. It is also contra-entry since all accounts are influenced concurrently by cash and bank. Bank a/c Dr. To Cash A/c (ii) Withdrawal of money from bank for office use:-

4. In the aforementioned trade, a cash account and a bank account are also influenced by the account. It is also contra-entry since all accounts are influenced concurrently by cash and bank. Cash a/c Dr. To Bank A/c (iii) Deposit of cheque (received from other) into Bank:- On the debit side "To Cheque-in-hand a/c" and on credit side “By Debtors a/c” with the same amount recorded. Cheque-in-hand A/c To Debtors A/c (iv) Dishonour of cheque deposited into Bank:- On the credit side "By Debtor a/c" and amount will be credited into the bank account. Debtor a/c Dr To Bank a/c Question 8: (i) Give the similarities of Cash Book with Journal. (ii) Give the similarities of Cash Book with ledger. Solution 8 (i) Similarities of Cash Book with Journal:- 1. The transactions in the cash book are documented from source records for the first time, much like a report. 2. Transactions in the cashbook are reported date-wise, i.e. in a chronological order, when and when they are put, much like a document. 3. Much as a log, cash book transfers are often posted in the ledger to the related accounts. 4. A cash book also includes a ledger folio column, much like a journal. (ii) Similarities of cash book with ledger:- 1. The sort of cash book closely resembles the account of a ledger. Having similar columns, it has two evenly separated sides. The left side (receipt side) is the debit side and the credit side is the right side and the credit side is the right side (payment side).

5. 2. The cash book itself often functions as a cash account and as such, when a cash book is held, the cash account is not opened in the ledger. The cash book, however, is indeed a part of the ledger. 3. In a cash book, much like a ledger account, the words 'To' and 'By' are sometimes used. 4. Much like a ledger account, it is balanced. Question 9: What are Contra Entries? Why these are not posted into the Ledger? Solution 9: Contra entries indicate entries on both sides of the cash book that are registered. When depositing or withdrawing money from the bank, these entries are made. The two accounts, the cash account and the bank account, are influenced by Contra entries. In the Cash Book, these two accounts appear together only so that the result of entries is fulfilled in the Cash Book and there is no need to post them in the ledger. Question 10: Explain the Statement ‘Cash book is a journalised Ledger’. Solution 10: Cash book is a journalised Ledger, it is a log because it first documents cash and bank transfers in it and a ledger since it often fits the function of a cash account. No distinct cash account is opened in the ledger when a cash book is prepared. Also read - Dk Goel Solutions Class 12 Download Free study materials for your Examinations at DK goel Solutions