CBSE Class 11 Accountancy Important Questions Chapter 4 - Recording Of Transactions 2 - Free PDF Download
FAQs on Important Questions for CBSE Class 11 Accountancy Chapter 4 - Recording Of Transactions 2
1. What is the purpose of compound journal entries?
Compound journal entries are used when a single transaction affects more than two accounts. They help maintain accuracy in recording complex transactions involving multiple aspects.
2. How does the voucher system contribute to accurate record-keeping?
The voucher system provides a structured approach to document and verify transactions. It ensures that every transaction is supported by appropriate evidence and details, reducing the chances of errors.
3. What are source documents, and why are they essential for accounting?
Source documents are original records that serve as evidence of a transaction. They are crucial because they provide information necessary for accurately recording transactions in the accounting books.
4. Explain the process of voucher preparation.
Voucher preparation involves selecting the appropriate voucher type, entering transaction details, classifying accounts, and adding a narration. The voucher becomes a reference for journalizing the transaction.
5. How are voucher transactions recorded in the books of accounts?
Voucher transactions are recorded through journal entries in their respective ledger accounts. This ensures that the impact of the transaction is correctly reflected in the financial records.
6. What role does the trial balance play in the accounting process?
The trial balance acts as a preliminary check to verify the accuracy of accounts. It ensures that the total debits equal total credits and assists in identifying errors before preparing financial statements.
7. Explain the types of errors and how they can be rectified.
Errors can be classified into errors of omission, commission, principle, and compensating. Errors can be rectified by identifying the error type and making necessary adjustments.