NCERT Class 11 Accountancy Financial Accounting-I: Chapter 4 — Recording of Transactions - II
This chapter, Recording of Transactions-II, builds upon the previous chapter by introducing the concept of special purpose books (also known as daybooks or subsidiary books) in accounting. It explains the need for these specialized journals when the volume of business transactions becomes large, making a single journal cumbersome. Special journals allow for quick, efficient, and accurate recording of repetitive transactions of a similar nature, such as cash receipts and payments, credit sales, and credit purchases. The chapter details several special purpose books: Cash Book, Purchases Book, Purchases Return Book, Sales Book, Sales Return Book, and Journal Proper. It emphasizes that transactions not fitting into any special journal are recorded in the Journal Proper. The chapter also introduces the Cash Book as a book of original entry that serves as both a journal and a ledger for cash and bank transactions, and begins by explaining the Single Column Cash Book format and its application in recording cash receipts and payments chronologically. This chapter is crucial for students to understand efficient transaction recording methods in accounting.
Quick info
| Board | CBSE / NCERT |
|---|---|
| Class | Class 11 |
| Subject | Accountancy |
| Book | Financial Accounting-I |
| Chapter | Chapter 4 — Recording of Transactions - II |
| Language | English |
| PDF type | NCERT Textbook |
| Session | CBSE 2026 |
| Reading time | 4 minutes |
| Word count | 609 |
Learning outcomes
- State the need for special purpose books.
- Record transactions in a cash book and post them to the ledger.
- Prepare a petty cash book.
- Record transactions in various special purpose books.
- Post entries from special purpose books to the ledger.
- Balance ledger accounts.
Vocabulary
| Word | Meaning |
|---|---|
| Journal | A book of original entry where business transactions are first recorded. |
| Ledger | A principal book of accounts where transactions are classified and posted under respective heads. |
| Special Journals | Sub-divisions of the journal, each meant for recording transactions of a similar nature. |
| Daybooks | Another term for special journals or subsidiary books. |
| Subsidiary Books | Books used to record specific types of transactions, like cash, credit sales, etc. |
| Journal Proper | A journal used to record transactions that cannot be recorded in any special journal. |
| Cash Book | A book recording all cash receipts and cash payments. |
| Book of Original Entry | The first book in which a transaction is recorded (e.g., Journal, Cash Book). |
| Chronological Order | Arranged in the order in which events happened. |
| Balancing | The process of finding the difference between the debit and credit sides of an account. |
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Practice questions
- Why are special purpose books needed in a business? Answer: Special purpose books are needed to efficiently and accurately record a large volume of repetitive business transactions, making accounting work quicker and more organized.
- What is the primary function of a Cash Book? Answer: A Cash Book records all transactions relating to cash receipts and cash payments.
- What does it mean to record transactions in chronological order? Answer: Recording transactions in chronological order means listing them in the sequence in which they occurred over time.
- Which book is used for transactions that cannot be recorded in any special journal? Answer: The Journal Proper is used for transactions that cannot be recorded in any special journal.
- How does a Cash Book serve as both a journal and a ledger? Answer: A Cash Book is a book of original entry (journal) for cash transactions and also acts as the ledger account for cash and bank, eliminating the need for a separate cash/bank account in the ledger.
Frequently asked questions
What are special purpose books in accounting?
Special purpose books, also known as daybooks or subsidiary books, are specialized journals designed to record specific types of repetitive business transactions efficiently.
What is the main advantage of using special journals?
The main advantages include quick, efficient, and accurate recording of transactions, division of labor, and economy in accounting work.
What is a Cash Book and what does it record?
A Cash Book is a book of original entry that records all transactions related to cash receipts and cash payments.
Can a Cash Book replace the ledger?
Yes, when a Cash Book is maintained, it serves the purpose of both the journal for cash transactions and the ledger account for cash and bank, so a separate cash/bank account in the ledger is not required.
What is a Single Column Cash Book?
A Single Column Cash Book records all cash receipts and payments in a chronological order and has only one amount column on each side (debit and credit).
Where are transactions recorded if they don't fit into any special journal?
Transactions that cannot be recorded in any special journal are recorded in a book called the Journal Proper.
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NCERT Class 11 Accountancy — Financial Accounting-I — Chapter 4 — Recording of Transactions - II. Verified by NCERT Help Editorial Team. Reviewed on 29 Jul 2026. Last updated 10 Aug 2026.