Learn CBSE Accountancy Index Terms for Class 11, Chapter 4 Recording of transactions – II
1. Day Books – A day book in accounts is an original book where the entries are recorded on a daily basis. The data recorded in journals are posted in their respective ledger account where it is summarised into a series of financial statements.
2. Posting – Posting is the process of transferring business transactions from journals to ledgers. Every transaction is first recorded in the Journal and subsequently transferred to their respective accounts.
3. Balancing of Accounts – Balancing of accounts is a way to balance the various ledger accounts. Accounts in the ledger are periodically balanced, generally at the end of the accounting period, with the object of ascertaining the net position of each amount.
In other words, balancing an account means that the two sides are totalled and the difference between them is shown on the side, which is shorter in order to make their totals equal. The wording balance carried down (c/d)’ is written against the amount of the difference between the two sides.
The amount of balance is brought down (b/d) in the next accounting period indicating that it is a continuing account until finally settled or closed. In case the debit side exceeds the credit side, the difference is written on the credit side, if the credit side exceeds the debit side, the difference between the two appears on the debit side and is called debit and credit balance respectively. The accounts of expenses/losses and gains/revenues are not balanced but are closed by transferring to the trading and profit and loss account.
We hope that the offered Accountancy Index Terms for Class 11 with respect to Chapter 4: Recording of transactions – II, will help you.
Related Links:
- Class 11 Accountancy Terms Part I – Chapter 1: Introduction to Accounting
- Class 11 Accountancy Terms Part I – Chapter 2: Theory Base of Accounting
- Class 11 Accountancy Terms Part I – Chapter 3: Recording of transactions – I
- Class 11 Accountancy Terms Part I – Chapter 5: Bank Reconciliation Statement
- Class 11 Accountancy Terms Part I – Chapter 6: Trial Balance and Rectification of Errors
- Class 11 Accountancy Terms Part I – Chapter 7: Depreciations, Provisions, and Reserves
- Class 11 Accountancy Terms Part II – Chapter 1: Financial Statements I
- Class 11 Accountancy Terms Part II – Chapter 2: Financial Statements II
- Class 11 Accountancy Terms Part II – Chapter 3: Accounts from Incomplete Records
- Class 11 Accountancy Terms Part II – Chapter 4: Applications of Computers in Accounting
