Class 11 DK Goel Solutions Chapter 11 - Books of Original Entry – Cash Book
FAQs on DK Goel Solutions Class 11 Accountancy Chapter 11
1. What are the various components of the Book of Original Entry?
The components of the book of original entry include available records, unusual records, sales, purchase records, inbound and outbound cash flows, and lastly, most importantly, cash book.
The other major components contained in books of original entry are transactional dates, details of the business trader.
The financial transactional information and amounts are also specified in the book of original entry. There are also some other significant references given in this record, such as documents, invoice details.
2. Why are Cash Books considered an essential part of a Book of Original Entry?
The reason for cash books to be an essential part of the book of original entry is that all the commercial transactions are noted down in the cash book for the initial stage. The primary set of transactional activities is recorded in the cashbook as part of the evidence.
This entry gives authenticity to the credit and debit side for any business. Cash books are known to keep only bank and monetary transactional records. The regulation to follow is to have a progressive order of entries.
3. How is the Cash Book different from the Ledger?
The main difference can be put out in the case of different regulatory formations. The task is to distinguish a commercial establishment’s income, profits, spending, and liability.
However, the cash book maintains a daily financial transaction record, both for inbound and outbound transactions. A business owner will always keep a check and maintain the balance between cash book and ledger. This will help them to scrutinize transactional details whenever they want to revisit documents for authenticity purposes.
4. According to Chapter 11 of Class 11 Accountancy, what is a balance sheet?
Starting a business necessitates extensive record-keeping. This is because the primary goal of every firm is to make money. However, many firms fail because they begin to operate at a loss. As a result, it's essential to keep accurate records, also known as balance sheets, so that each process can be tracked and analysed if and when something goes wrong. This can help a company avoid losing money. Apart from that, a daily record of the business's operations can be kept, and actions can be performed as needed.
5. According to Class 11 Accountancy, what is the need for accounting?
Accountancy can be an important aspect of a company's or a country's economic development. Accountancy is required to identify the financial health of any corporation and to provide first-hand knowledge on prospective sources of income, as well as to administrate critical areas to reduce expenses or overheads that will cause the business entity to lose money. In simple terms, accountancy is required to produce profits for a company, business and ultimately the country's economy.
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6. What is the basic concept explained in Chapter 11 of Accounts Class 11?
Official bodies have established a standard set of rules and standards that must be followed and employed during the process of recording transactions into the relevant accounting books. The DK Goel Solutions for Class 11 Accounts Chapter 11 provides a thorough overview of all the methods required to handle accountancy problems.
7. What are the reasons for which some organisations use incomplete records?
Most corporate organizations and agencies, listed corporations, or organisations employ the incomplete records accounting method in their accounting operations to recover money on the costs of a systematic accounting process. When an organisation has limited resources, it tries to preserve and save revenue in order to maintain the organization's economic activities. Even a shortage of qualified accountants and staff contributes to the extent of keeping incomplete records. This is a typical practice among many company entities when there is a limited amount of information regarding their financial situation available.
