# Recording of Transactions - I, Class 11 Accountancy | SwaVid

Recording of Transactions - I, NCERT Class 11 Accountancy: notes with key ideas, formats, common mistakes and 3 quick checks with worked answers.

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# Recording of Transactions - I

## Definitions, formats and formulas

## Key ideas

## Common mistakes

## Quick checks

## Keep going

## Questions parents ask

## Class 11 Accountancy on SwaVid

### Business transactions and source documents

### Accounting equation

### Rules of debit and credit

### Journalising transactions

### Ledger and posting

### Balancing ledger accounts

### Next chapter

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Notes written by SwaVid from the NCERT textbook.

Class 11 Accountancy, Chapter 3. Key ideas, definitions and common mistakes.

CBSE does not print marks for a single chapter.

Short answer. This chapter explains how business transactions are identified from source documents and recorded using the accounting equation and rules of debit and credit. Students learn to record entries in the journal and post them systematically into ledger accounts.

Source: NCERT Financial Accounting I (Reprint 2026-27) , Chapter 3, Recording of Transactions - I

Every transaction is evidenced by a source document such as a cash memo, invoice, or receipt. These documents provide objective evidence to prepare accounting vouchers.

The accounting equation states that Assets = Liabilities + Capital. Every transaction affects at least two accounts in a way that keeps the equation in balance.

Under the modern classification, assets and expenses increase on debit and decrease on credit. Liabilities, capital, and revenues increase on credit and decrease on debit.

The journal is the book of primary entry where transactions are recorded in chronological order. Each entry includes the date, accounts debited and credited, amounts, and a brief narration.

The ledger is the principal book containing individual accounts for every asset, liability, capital, expense, and revenue. Posting transfers the debit and credit aspects from the journal to respective ledger accounts.

At the end of an accounting period, personal and real accounts are balanced by finding the difference between total debits and total credits. Nominal accounts are not balanced; their totals are transferred to the trading and profit and loss account.

Try each question first. Then tap it to see the answer.

Assets = Liabilities + Capital

Assets = ₹ 40,000 + ₹ 1,00,000 = ₹ 1,40,000

₹ 1,40,000

Purchases is an expense (increasing, so debited)

Raman is a creditor/liability (increasing, so credited)

Entry: Purchases A/c Dr 15,000 / To Raman A/c 15,000

Purchases A/c Dr 15,000 / To Raman A/c 15,000

Total debits = ₹ 8,000 (opening) + ₹ 5,000 (sales) = ₹ 13,000

Total credits = ₹ 9,000 (cash received)

Debit balance = ₹ 13,000 - ₹ 9,000 = ₹ 4,000

₹ 4,000 (Debit balance)

Recording of Transactions - II .

Theory Base of Accounting .

Trial Balance and Rectification of Errors .

The 9 chapters of Class 11 Accountancy .

CBSE does not give marks to one chapter. It prints marks for units or parts, and the chapter list page shows them all.

No. They are written by SwaVid from the NCERT textbook. The CBSE curriculum is the reference for what is assessed.

Recording of Transactions - II.

SwaVid is an AI tutor for Indian students in Classes 6 to 12. It finds the earlier ideas a child missed, then teaches today’s chapter. Start free to see how it works.

- Ch 3 NCERT book
- 80 marks, theory paper
- 3 quick checks
- Crediting the supplier when goods are purchased for cash . Credit Cash Account, not the supplier name, because cash is paid immediately and no liability is created.
- Treating proprietor drawings as a business expense . Debit Drawings Account rather than an expense account, because withdrawals of cash or goods reduce proprietor capital.
- Writing To and By on the wrong sides of a ledger account . Always use the prefix 'To' on the debit (left) side and 'By' on the credit (right) side of a ledger account.
- Balancing nominal accounts at the end of the period . Do not carry forward balances of nominal accounts; simply total them for transfer to the trading and profit and loss account.

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