Chapter 4 of Class 11 Accountancy, Recording of Transactions – 2, is all about maintaining different types of subsidiary books. These books help businesses in recording transactions in an organised way. This chapter explains the purpose and format of various special journals like Cash Book, Purchases Book, Sales Book, and more. Instead of putting all transactions in one place, businesses divide them into different books for better clarity and time-saving.
I wanted to write about this chapter because many students don’t realise how important it is until they reach practical questions. If Chapter 3 teaches how to record entries, Chapter 4 shows how to group similar transactions and enter them into the right books. This makes your accounting work more structured and easy to manage. It’s not just for school learning—this system is actually used in real-life businesses too. I’ve also shared a link to download the full PDF of this chapter, so that you can keep it handy for revision and practice. This chapter is scoring, so you should not miss mastering it properly.
What You Will Learn in Recording of Transactions – 2
This chapter takes forward what was taught in the previous one. While Chapter 3 focused on recording in the journal, this one deals with special purpose books which are used when the number of transactions becomes large.
Here are the key parts covered in this chapter:
1. Need for Special Purpose Books
When a business grows, journal entries become too many. It becomes difficult to track everything from one place. So, businesses divide transactions and maintain separate books for each type.
2. Types of Subsidiary Books
The following books are covered in detail in this chapter:
- Cash Book: Records all cash and bank transactions.
- Single Column Cash Book: Only cash entries
- Double Column: Cash and bank
- Triple Column: Cash, bank and discount
- Purchases Book: Records all credit purchases of goods
- Sales Book: Records all credit sales of goods
- Purchases Return Book: Records return of goods to suppliers
- Sales Return Book: Records return of goods from customers
- Journal Proper: For transactions that do not fit in other books
3. Format and Posting
Each book has a specific format. Once entries are made in these books, they are posted to respective ledger accounts.
| Book Type | Records What? | Entry Type |
|---|---|---|
| Cash Book | Cash and bank transactions | Real Account |
| Purchases Book | Credit purchases of goods | Personal/Real |
| Sales Book | Credit sales of goods | Personal/Real |
| Journal Proper | Adjustments, Opening entries etc. | All types |
4. Examples and Practice Entries
The chapter also provides examples of how to record actual transactions using the formats. You’ll learn how to balance cash book columns and post entries to ledgers.
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Click Here to Download NCERT Class 11 Accountancy Chapter 4: Recording of Transactions – 2 PDF
