Class 11 DK Goel Solutions Chapter 11 - Books of Original Entry – Cash Book
FAQs on DK Goel Class 11 Accountancy Solutions: Chapter 11 Overview
1. How do the DK Goel Solutions for Class 11 Accountancy Chapter 11 help in solving practical questions on the Cash Book?
The DK Goel Solutions for Chapter 11 provide a detailed, step-by-step methodology for accurately recording all cash and bank transactions. They explain the correct format for different types of Cash Books and demonstrate how to post entries, handle contra entries, and balance the columns as per the CBSE 2025-26 syllabus. This helps students master the practical application of concepts for their exams.
2. What is the correct step-by-step method for recording a transaction in a simple Cash Book?
As per the standard accounting procedure for a simple Cash Book, follow these steps to solve any problem:
Step 1: Identify the nature of the transaction – whether it is a cash receipt or a cash payment.
Step 2: For all cash receipts, make an entry on the debit (Dr.) side of the Cash Book.
Step 3: For all cash payments, make an entry on the credit (Cr.) side of the Cash Book.
Step 4: Fill in the date, particulars, Ledger Folio (L.F.), and the exact amount for each transaction.
Step 5: At the end of the period, calculate the closing balance by finding the difference between the total of the debit and credit sides.
3. How do you correctly solve for contra entries in a double-column Cash Book?
A contra entry is a transaction that affects both the cash and bank accounts, such as depositing cash into the bank or withdrawing cash from the bank for office use. To solve this correctly, the entry is recorded on both sides of the Cash Book. For example, when cash is deposited into the bank, the Bank column is debited, and the Cash column is credited. The letter 'C' is written in the L.F. column on both sides to indicate it is a contra entry.
4. Why is the Cash Book uniquely considered both a journal and a ledger?
The Cash Book has a dual role in the accounting process. It is considered a book of original entry, or a journal, because cash and bank transactions are first recorded here chronologically. Simultaneously, it functions as a ledger because it maintains the final Cash and Bank accounts. By preparing a Cash Book, separate Cash and Bank accounts in the main ledger are not required, which is why it serves both purposes.
5. What is the key difference in the method of preparing a Petty Cash Book compared to a main Cash Book?
The primary methodological difference lies in the system used. The main Cash Book records all significant cash and bank transactions individually on debit and credit sides. In contrast, the Petty Cash Book is typically maintained using the 'imprest system'. Under this method, a fixed amount is given to the petty cashier at the beginning of a period. Small, routine expenses are paid from this fund and recorded, and the total amount spent is reimbursed at the end of the period to restore the original balance.
6. What does a credit balance in the bank column of a Cash Book signify, and how is it correctly shown when balancing?
A credit balance in the bank column indicates a bank overdraft, which means the business has withdrawn more money from its bank account than it had deposited. This represents a liability for the business. When balancing the Cash Book, this overdraft is shown as 'By Balance c/d' on the debit (receipts) side to make the totals of both sides equal. However, it is carried forward to the next period as 'To Balance b/d' on the credit side, correctly reflecting its status as a liability.
7. What are some common errors to watch for when solving practical problems on balancing a double-column Cash Book?
When solving questions from DK Goel Chapter 11, students should be careful about these common errors:
Posting a receipt on the credit side or a payment on the debit side.
Forgetting to post the second aspect of a contra entry or not marking it with 'C' in the L.F. column.
Making calculation mistakes while totalling the debit and credit columns.
Incorrectly calculating the closing balance ('By Balance c/d').
Posting a cheque received directly into the bank column before it has been deposited.
