Ledger
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A ledger contains classified and permanent records of all business transactions organized by individual accounts. It has two sides, with debits recorded on the left and credits on the right. The difference between the totals of each side represents the balance. Balances are carried forward to the next accounting period as opening balances. Posting transfers journal entries to the appropriate ledger accounts, with the date, amount, and source recorded.
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Jan 1: Capital 80,000
To Cash 80,000
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Jan 3: Purchases 5,000
To Cash 5,000
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(5).ppt
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Cash Book Class 11
In the context of Accountancy Class 11, a cash book is a book of original entry in which all cash receipts and cash payments are recorded. It is a subsidiary book of accounts, and is maintained to record all cash transactions in a systematic and organised manner.
The cash book serves as a primary record for all cash receipts and payments, and is used to keep track of the inflow and outflow of cash in a business. It is an important tool for maintaining accurate accounting records and for financial management.
In Class 11 Accountancy, students are introduced to the concept of cash book and are taught to prepare different types of cash books such as single column cash book, double column cash book, and triple column cash book. They are also taught to record transactions in the cash book, and to prepare bank reconciliation statements using the information from the cash book.Overall, the cash book plays an important role in the study of Accountancy Class 11, and is a fundamental tool for understanding the basics of accounting and financial management.
Recording of Cash Transaction : Cash book
Meaning —- Cash Book is the book in which all the cash transactions i.e. cash receipts and cash payments are recorded. In the words of Carter, “It is a book of preliminary accounts in which receipts and payments of money are recorded.” All cash receipts are written on the debit side and all payments are written on the credit side. Bank related transactions are also written in this book.
Cash book is that book which fulfils the purpose of both journal and ledger. Since the primary entry of transactions is made in the cash book, it is also called the Book of Original Entry. The balance of the cash and bank accounts of the cash book is written in the trial balance and the balance sheet. This is the reason why a cash book is considered a principal book as well as a subsidiary book. (Cash book is both a subsidiary book and a principal book.)
Cash book is a Journal or Ledger
Sometimes the question arises whether a cash book is a journal or a ledger. It is a journal because all cash transactions are recorded in it for the first time from the source documents. These are then shown in the ledger in the respective accounts.
Cash book is also a ledger (i.e. ledger) because it also serves as a cash account. When the cash book is prepared, a separate cash account is not maintained in the ledger. As a result, a cash book is both a journal and a ledger (Cash book is a journal as well as a ledger). That’s why it can be called ‘Journalised Ledger’. In fact, the cash book is both a subsidiary book and a ledger. Since the initial accounting of all cash transactions is in the cash book, this subsidiary is the same and because the cash account is not maintained with it, it is the ledger.
Features of Cash book
The following are the features of cash book which throw light on its nature:
(1) The cash book records only one aspect of the transaction i.e. cash.
(2) Transaction
Subsidiary books of account
The document discusses subsidiary books of accounts which are used to record transactions of similar nature at one place. It explains key subsidiary books like purchase book, sales book, purchase return book, sales return book, bills receivable book, bills payable book and cash book. It also discusses the advantages and disadvantages of maintaining subsidiary books. Maintaining subsidiary books divides the accounting work, ensures specialization and prevents errors but it also requires more resources and knowledge.
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Cash book financial accounting prepared by Prof.Satish R.Tajane
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Tdasx: Unveiling the Trillion-Dollar Potential of Bitcoin DeFi
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Ledger
- 1. SUBMITTED TO :- Dr. Sunil Kumar Verma SUBMITTED BY :- Gurkirat Singh
- 2. A Ledger is a book which contains all the accounts which are first entered in journal. According to L.C. Cropper, ‘the book which contains a classified and permanent record of all the transactions of a business is called the Ledger’. It’s a permanent record of transactions that can not changed
- 3. It has two identical sides - left hand side (debit side) and right hand side (credit side). • Debit aspect of all the transactions are recorded on the debit side and credit aspects of all the transactions are recorded on credit side according to date. • The difference of the totals of the two sides represents balance. The excess of debit side over credit side indicates debit balance, while excess of credit side over debit side indicates the credit balance. If the two sides are equal, there will be no balance. • Generally the balance is drawn at the year end and recorded on the lesser side to make the two sides equal. This balance is know as closing balance. • The closing balance of the current year becomes the opening balance of the next year.
- 4. Name of The Account Dr. Cr. Date Particulars J.F. Amount Date Particulars J.F. Amount Year Month Date Accounts name Year Month Date Accounts name
- 5. Posting refers to transferring the information in a journal entry to the appropriate ledger account. Following may be the procedure for posting: Enter date Enter amount in proper debit or credit column. Enter journal source info.
- 7. Journalise the following transactions in the books of Amar and post them in the Ledger:- March 2004 1 Bought goods for cash Rs. 25,000 2 Sold goods for cash Rs. 50,000 3 Bought goods for credit from Gopi Rs.19,000 5 Sold goods on credit to Robert Rs.8,000 7 Received from Robert Rs. 6,000 9 Paid to Gopi Rs.5,000 20 Bought furniture for cash Rs. 7,000
- 10. There are six accounts involved in this illustration: Cash, Purchases, Sales, Furniture, Gopi & Robert, So six accounts are to be opened in the ledger.
- 11. Cash Account
- 13. Sales Account
- 15. Gopi Account
- 16. Robert Account