Recording of Transactions-I explains how business transactions are first recorded in accounting books using the double-entry system. It introduces the journal, debit-credit rules, source documents and ledger posting as the base of practical Accountancy.
Important Questions Class 11 Accountancy Chapter 3 help students practise the first practical stage of accounting. A business first identifies a transaction, checks the source document, records the transaction in the journal and then posts it to the ledger.
NCERT explains that accounting starts with identifying and analysing business transactions. These transactions are recorded in the journal, which is the book of original entry, and later posted to ledger accounts.
The chapter covers source documents, accounting vouchers, accounting equation, rules of debit and credit, journal entries, ledger accounts and posting. These areas appear in both theory and practical questions.
Key Takeaways from Important Questions Class 11 Accountancy Chapter 3
| Area |
What Students Should Revise |
| Chapter Name |
Recording of Transactions-I |
| Chapter Number |
Chapter 3 |
| Subject |
Accountancy |
| Class |
Class 11 |
| Main Focus |
Journal entries, accounting equation, ledger posting |
| Important Theory Topics |
Source documents, vouchers, journal, ledger |
| Important Practical Topics |
Debit-credit rules, journalising, posting |
| High-Intent Search Area |
class 11 journal entry questions |
| Common Mistake |
Debiting or crediting the wrong account |
| Best Revision Method |
Identify account type before writing entries |
Recording of Transactions Class 11: Important Concepts
Recording of transactions class 11 means writing business transactions in books of accounts with proper debit and credit effects. Every transaction has two sides because accounting follows the double-entry system.
A cash sale increases cash and increases sales. A credit purchase increases purchases and increases creditors. A salary payment increases expense and reduces cash.
Students should revise these areas before solving recording of transactions 1 class 11 important questions:
- Source documents and vouchers
- Accounting equation
- Rules of debit and credit
- Journal format
- Journalising questions class 11
- Ledger posting questions class 11
- GST-based journal entries
- One-mark and MCQ questions
CBSE Class 11 Accountancy Important Questions Chapter-Wise
Source Documents Class 11 Accountancy Questions
Source documents prove that a transaction has taken place. They form the basis for recording entries in books of accounts. Examples include cash memo, invoice, sales bill, pay-in-slip, cheque and salary slip. Vouchers support the recording of business transactions.
Q1. What is a source document?
A source document is written evidence of a business transaction. Examples include invoice, cash memo, cheque, pay-in-slip and salary slip.
Q2. Why are source documents important in accounting?
Source documents prove that a transaction happened. They also help accountants record correct amounts, dates and parties.
Q3. What is a voucher?
A voucher is a document prepared from source evidence. It supports the debit and credit record of a transaction.
Q4. Name three accounting vouchers.
Cash voucher, debit voucher and credit voucher are common accounting vouchers. Journal voucher is used for complex transactions.
Debit and Credit Rules Class 11 Questions
Debit and credit rules decide which account comes on the debit side and which account comes on the credit side. Students should learn the rule by account type, not by guessing.
| Account Type |
Debit Rule |
Credit Rule |
| Asset |
Increase |
Decrease |
| Liability |
Decrease |
Increase |
| Capital |
Decrease |
Increase |
| Revenue or Gain |
Decrease |
Increase |
| Expense or Loss |
Increase |
Decrease |
Debit and credit do not always mean increase or decrease. Their meaning depends on the type of account.
Q5. Does debit always mean increase?
No. Debit does not always mean increase. Debit increases assets and expenses, but it decreases liabilities, capital and revenue.
Q6. What is credited when capital increases?
Capital Account is credited when capital increases. Fresh capital introduced by the owner increases capital.
Q7. What is debited when salary is paid?
Salary Account is debited because salary is an expense. Cash or Bank Account is credited because payment reduces asset.
Q8. What is credited when goods are sold for cash?
Sales Account is credited because sales increase revenue. Cash Account is debited because cash increases.
Important Questions Class 11 Accountancy Chapter 3: Basic Journal Entries
Start with simple cash, credit, purchase, sales and expense transactions. These entries build the base for longer journal entries questions class 11.
Q9. Journalise: Business started with cash ₹1,00,000.
| Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
| 2026 |
Cash A/c Dr. |
|
1,00,000 |
|
|
To Capital A/c |
|
|
1,00,000 |
|
Being business started with cash |
|
|
|
Reason: Cash increases, so Cash Account is debited. Capital increases, so Capital Account is credited.
Q10. Journalise: Goods purchased for cash ₹20,000.
| Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
| 2026 |
Purchases A/c Dr. |
|
20,000 |
|
|
To Cash A/c |
|
|
20,000 |
|
Being goods purchased for cash |
|
|
|
Reason: Purchases increase, so Purchases Account is debited. Cash decreases, so Cash Account is credited.
Q11. Journalise: Goods purchased from Ramesh on credit ₹40,000.
| Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
| 2026 |
Purchases A/c Dr. |
|
40,000 |
|
|
To Ramesh A/c |
|
|
40,000 |
|
Being goods purchased from Ramesh on credit |
|
|
|
Reason: Purchases increase. Ramesh becomes a creditor.
Q12. Journalise: Goods sold for cash ₹30,000.
| Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
| 2026 |
Cash A/c Dr. |
|
30,000 |
|
|
To Sales A/c |
|
|
30,000 |
|
Being goods sold for cash |
|
|
|
Reason: Cash increases. Sales revenue increases.
Q13. Journalise: Goods sold to Sarita on credit ₹10,000.
| Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
| 2026 |
Sarita A/c Dr. |
|
10,000 |
|
|
To Sales A/c |
|
|
10,000 |
|
Being goods sold to Sarita on credit |
|
|
|
Reason: Sarita becomes a debtor. Sales revenue increases.
Q14. Journalise: Paid salary ₹3,000.
| Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
| 2026 |
Salary A/c Dr. |
|
3,000 |
|
|
To Cash A/c |
|
|
3,000 |
|
Being salary paid |
|
|
|
Reason: Salary is an expense. Cash decreases.
Q15. Journalise: Purchased furniture for cash ₹10,000.
| Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
| 2026 |
Furniture A/c Dr. |
|
10,000 |
|
|
To Cash A/c |
|
|
10,000 |
|
Being furniture purchased for cash |
|
|
|
Reason: Furniture is a fixed asset. Cash decreases.
Journal Entries Questions Class 11 with Solutions
These journal entries questions class 11 include common exam transactions. Students should practise narration because it explains the transaction.
Q16. Journalise: Opened a bank account with ₹50,000.
| Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
| 2026 |
Bank A/c Dr. |
|
50,000 |
|
|
To Cash A/c |
|
|
50,000 |
|
Being bank account opened with cash |
|
|
|
Q17. Journalise: Paid rent by cheque ₹5,000.
| Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
| 2026 |
Rent A/c Dr. |
|
5,000 |
|
|
To Bank A/c |
|
|
5,000 |
|
Being rent paid by cheque |
|
|
|
Q18. Journalise: Received commission ₹2,000 in cash.
| Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
| 2026 |
Cash A/c Dr. |
|
2,000 |
|
|
To Commission Received A/c |
|
|
2,000 |
|
Being commission received in cash |
|
|
|
Q19. Journalise: Cash withdrawn by proprietor for personal use ₹4,000.
| Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
| 2026 |
Drawings A/c Dr. |
|
4,000 |
|
|
To Cash A/c |
|
|
4,000 |
|
Being cash withdrawn by proprietor for personal use |
|
|
|
Q20. Journalise: Goods worth ₹2,000 used by proprietor.
| Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
| 2026 |
Drawings A/c Dr. |
|
2,000 |
|
|
To Purchases A/c |
|
|
2,000 |
|
Being goods withdrawn by proprietor for personal use |
|
|
|
Q21. Journalise: Goods worth ₹1,500 given as charity.
| Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
| 2026 |
Charity A/c Dr. |
|
1,500 |
|
|
To Purchases A/c |
|
|
1,500 |
|
Being goods given as charity |
|
|
|
Q22. Journalise: Received cheque from debtor ₹12,000 and deposited it into bank.
| Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
| 2026 |
Bank A/c Dr. |
|
12,000 |
|
|
To Debtor’s A/c |
|
|
12,000 |
|
Being cheque received from debtor and deposited into bank |
|
|
|
Important Journal Entries Class 11 for Practice
Important journal entries class 11 usually cover capital, purchases, sales, expenses, assets, drawings, bad debts and outstanding expenses.
These questions are useful for students who want journal entry questions for class 11 with answers in exam-style format.
Q23. Journalise: Bought machinery for ₹80,000. Paid ₹20,000 in cash and balance on credit.
| Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
| 2026 |
Machinery A/c Dr. |
|
80,000 |
|
|
To Cash A/c |
|
|
20,000 |
|
To Creditor A/c |
|
|
60,000 |
|
Being machinery purchased, part payment made in cash |
|
|
|
Reason: Machinery increases as an asset. Cash decreases, and creditor liability increases.
Q24. Journalise: Paid ₹9,800 to a creditor in full settlement of ₹10,000.
| Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
| 2026 |
Creditor A/c Dr. |
|
10,000 |
|
|
To Cash A/c |
|
|
9,800 |
|
To Discount Received A/c |
|
|
200 |
|
Being creditor paid in full settlement |
|
|
|
Q25. Journalise: Received ₹4,800 from a debtor in full settlement of ₹5,000.
| Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
| 2026 |
Cash A/c Dr. |
|
4,800 |
|
|
Discount Allowed A/c Dr. |
|
200 |
|
|
To Debtor A/c |
|
|
5,000 |
|
Being amount received from debtor in full settlement |
|
|
|
Q26. Journalise: ₹1,000 due from a customer became bad debt.
| Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
| 2026 |
Bad Debts A/c Dr. |
|
1,000 |
|
|
To Customer A/c |
|
|
1,000 |
|
Being amount due from customer written off as bad debt |
|
|
|
Q27. Journalise: Rent outstanding ₹2,500.
| Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
| 2026 |
Rent A/c Dr. |
|
2,500 |
|
|
To Outstanding Rent A/c |
|
|
2,500 |
|
Being rent outstanding |
|
|
|
Q28. Journalise: Insurance prepaid ₹1,200.
| Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
| 2026 |
Prepaid Insurance A/c Dr. |
|
1,200 |
|
|
To Insurance A/c |
|
|
1,200 |
|
Being insurance prepaid |
|
|
|
Journal Entry Questions for Class 11 with Answers: GST-Based Entries
Journal entry questions for class 11 with answers may include Goods and Services Tax entries. Students should practise Input GST, Output GST and set-off logic.
These entries test whether students can record GST along with purchases, sales, expenses and assets.
Q29. Bought goods ₹1,00,000 on credit within the same state. CGST 5% and SGST 5%.
| Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
| 2026 |
Purchases A/c Dr. |
|
1,00,000 |
|
|
Input CGST A/c Dr. |
|
5,000 |
|
|
Input SGST A/c Dr. |
|
5,000 |
|
|
To Creditor A/c |
|
|
1,10,000 |
|
Being goods purchased on credit with CGST and SGST |
|
|
|
Q30. Sold goods ₹1,35,000 on credit within the same state. CGST 5% and SGST 5%.
| Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
| 2026 |
Debtor A/c Dr. |
|
1,48,500 |
|
|
To Sales A/c |
|
|
1,35,000 |
|
To Output CGST A/c |
|
|
6,750 |
|
To Output SGST A/c |
|
|
6,750 |
|
Being goods sold on credit with CGST and SGST |
|
|
|
Q31. Paid transport charges ₹8,000 by bank. CGST 5% and SGST 5%.
| Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
| 2026 |
Transport Charges A/c Dr. |
|
8,000 |
|
|
Input CGST A/c Dr. |
|
400 |
|
|
Input SGST A/c Dr. |
|
400 |
|
|
To Bank A/c |
|
|
8,800 |
|
Being transport charges paid with GST |
|
|
|
Q32. Bought furniture for office ₹50,000. CGST 9% and SGST 9%.
| Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
| 2026 |
Furniture A/c Dr. |
|
50,000 |
|
|
Input CGST A/c Dr. |
|
4,500 |
|
|
Input SGST A/c Dr. |
|
4,500 |
|
|
To Bank A/c |
|
|
59,000 |
|
Being office furniture bought with GST |
|
|
|
Accounting Equation Questions Class 11
Accounting equation shows that assets always equal liabilities plus capital. It is also called the balance sheet equation.
Assets=Liabilities+CapitalAssets = Liabilities + CapitalAssets=Liabilities+Capital
Accounting equation questions class 11 help students understand why every transaction has two effects.
Q33. State the accounting equation.
The accounting equation is:
Assets=Liabilities+CapitalAssets = Liabilities + CapitalAssets=Liabilities+Capital
Q34. Find capital if assets are ₹2,50,000 and liabilities are ₹80,000.
Capital=Assets−LiabilitiesCapital = Assets - LiabilitiesCapital=Assets−Liabilities Capital=₹2,50,000−₹80,000Capital = ₹2,50,000 - ₹80,000Capital=₹2,50,000−₹80,000 Capital=₹1,70,000Capital = ₹1,70,000Capital=₹1,70,000
Q35. Find liabilities if assets are ₹5,00,000 and capital is ₹3,20,000.
Liabilities=Assets−CapitalLiabilities = Assets - CapitalLiabilities=Assets−Capital Liabilities=₹5,00,000−₹3,20,000Liabilities = ₹5,00,000 - ₹3,20,000Liabilities=₹5,00,000−₹3,20,000 Liabilities=₹1,80,000Liabilities = ₹1,80,000Liabilities=₹1,80,000
Q36. Show the effect of these transactions through accounting equation.
- Business started with cash ₹1,50,000
- Purchased goods for cash ₹20,000
- Purchased furniture for cash ₹30,000
- Bought goods on credit from Ramesh ₹40,000
- Paid salary ₹5,000
| Transaction |
Assets ₹ |
Liabilities ₹ |
Capital ₹ |
| Business started with cash |
Cash 1,50,000 |
|
Capital 1,50,000 |
| Purchased goods for cash |
Cash -20,000, Stock +20,000 |
|
No change |
| Purchased furniture for cash |
Cash -30,000, Furniture +30,000 |
|
No change |
| Bought goods on credit |
Stock +40,000 |
Ramesh +40,000 |
No change |
| Paid salary |
Cash -5,000 |
|
Capital -5,000 |
Final Accounting Equation
| Assets |
Amount ₹ |
| Cash |
95,000 |
| Stock |
60,000 |
| Furniture |
30,000 |
| Total Assets |
1,85,000 |
| Liabilities and Capital |
Amount ₹ |
| Ramesh |
40,000 |
| Capital |
1,45,000 |
| Total Liabilities and Capital |
1,85,000 |
Answer: The accounting equation balances because total assets equal total liabilities plus capital.
Accountancy Class 11 Chapter 3 Solutions Journalising
Students search accountancy class 11 chapter 3 solutions journalising when they need step-by-step entries. Use one fixed method for every transaction.
First, find whether the transaction affects asset, liability, capital, revenue or expense. Next, decide which account increases and which account decreases.
Then apply the debit-credit rule. Finally, write the journal entry with narration.
Example: Purchased goods from Mohan for ₹25,000.
Purchases is an expense, so debit Purchases Account.
Mohan becomes a creditor, so credit Mohan Account.
| Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
| 2026 |
Purchases A/c Dr. |
|
25,000 |
|
|
To Mohan A/c |
|
|
25,000 |
|
Being goods purchased from Mohan on credit |
|
|
|
Journal Class 11 Questions on Ledger Posting
Journal class 11 questions also include ledger posting. A journal records the complete transaction first.
A ledger groups all transactions account-wise. Posting means transferring entries from journal to ledger.
Q37. What is a ledger?
A ledger is the principal book of accounts.
It contains separate accounts for assets, liabilities, capital, expenses and revenues.
Q38. What is posting?
Posting means transferring journal entries to the respective ledger accounts.
The debit account in the journal goes to the debit side of that ledger account.
Q39. Why is ledger important?
Ledger helps find the balance of each account.
It shows how much a business owes, owns, earns or spends.
Q40. What is the difference between journal and ledger?
Journal records transactions in chronological order.
Ledger records transactions account-wise.
Ledger Posting Questions Class 11 with Format
Ledger posting questions class 11 test whether students can transfer journal entries into account-wise format. The ledger account must show debit side, credit side and closing balance.
Q. Post the following transactions to Cash Account.
- Business started with cash ₹1,00,000
- Goods purchased for cash ₹20,000
- Paid salary ₹3,000
- Goods sold for cash ₹30,000
Cash Account
| Dr. |
|
|
Cr. |
|
|
| Date |
Particulars |
Amount ₹ |
Date |
Particulars |
Amount ₹ |
| 2026 |
To Capital A/c |
1,00,000 |
2026 |
By Purchases A/c |
20,000 |
| 2026 |
To Sales A/c |
30,000 |
2026 |
By Salary A/c |
3,000 |
|
|
|
2026 |
By Balance c/d |
1,07,000 |
|
|
1,30,000 |
|
|
1,30,000 |
Answer: Closing cash balance is ₹1,07,000.
Journal Important Questions Class 11: MCQs and One-Mark Questions
These journal important questions class 11 help students revise quick facts before tests.
Read each question carefully because many one-mark questions test basic terms from Recording of Transactions-I.
Q41. The book of original entry is called:
Answer: Journal.
Q42. The principal book of accounts is called:
Answer: Ledger.
Q43. The process of recording transactions in journal is called:
Answer: Journalising.
Q44. The process of transferring journal entries to ledger is called:
Answer: Posting.
Q45. Which side of an account is called debit?
Answer: Left side.
Q46. Which side of an account is called credit?
Answer: Right side.
Q47. What is L.F. in journal format?
L.F. means Ledger Folio.
It records the ledger page number where the account appears.
Q48. In a journal entry, which account is written first?
The debit account is written first.
The credit account is written below it with the word “To”.
Plus One Accountancy Chapter 3 Questions and Answers
Some students search plus one accountancy chapter 3 questions and answers for the same topic. The focus remains on Recording of Transactions-I, journal entries and debit-credit rules.
These questions are useful for quick concept checks before solving longer journal entries class 11 questions.
Q49. Why is journal called the book of original entry?
Journal is called the book of original entry because transactions are first recorded in it from source documents.
Q50. What is a simple journal entry?
A simple journal entry records one debit and one credit.
Example: Cash A/c Dr. To Sales A/c.
Q51. What is a compound journal entry?
A compound journal entry records more than two accounts.
It may have multiple debits, multiple credits or both.
Q52. Give one example of a compound journal entry.
| Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
| 2026 |
Furniture A/c Dr. |
|
25,000 |
|
|
To Cash A/c |
|
|
5,000 |
|
To Creditor A/c |
|
|
20,000 |
|
Being furniture purchased, part payment made in cash |
|
|
|