Revision: Journal, Ledger and Trial Balance Accounts ISC (Commerce) Class 11 CISCE

Casting means totalling up the amounts in the debit and credit columns of the journal—usually at the end of each page or section.

Journalising is the process of recording business transactions in the journal as soon as they happen.

A journal is a book where every business transaction is recorded as soon as it happens.

A journal entry is a short written record of a business transaction in the accounting books, showing which account is debited and which is credited, always following the double-entry system.

Books of accounts are records in which a business keeps a detailed log of all its financial transactions.

A computerised ledger software is a computer program that helps record, organize, and manage all financial transactions quickly and accurately.

Balancing a ledger account means adding up the debit and credit columns, finding the difference, and inserting this difference as 'Balance c/d' (carried down) on the side that totals less. This final balance is then brought forward for the next accounting period as 'Balance b/d' (brought down)

Posting is the process of transferring each entry from the journal or subsidiary books into the appropriate ledger account.

A petty cashier is responsible for handling petty cash and maintaining the petty cash book.

A petty cash book is a type of cash book in accounting that records all minor, routine cash payments and receipts separately from the main cash book.

A sales book is a special accounting record used to write down all the credit sales of goods made by a business, while cash sales or sales of assets are recorded elsewhere.

A Purchase Book (also called Bought Day Book or Purchase Journal) is used to record only credit purchases of goods intended for resale or production. 

The Sales Return Book is a special accounting book used to record goods that were sold to customers on credit but are returned to the business because they are not as ordered, damaged, or defective.

A credit note is a document given by a seller to a buyer when goods are returned, showing the amount to reduce or cancel what the buyer has to pay; it acts like a “refund slip” that adjusts the buyer’s account and proves the return happened.

A debit note is a brief statement prepared by the buyer when returning goods, showing the details and amount of goods returned, and letting the supplier know to reduce the buyer’s amount owed.

A purchase return book is a special accounting book where a business records goods sent back to suppliers because they are the wrong quality, damaged, or not needed—only returns from credit purchases are included. 

Journal Proper is a special accounting book where rare or miscellaneous transactions, not recorded in other subsidiary books, are entered.

A cash book is a special account book where all business cash and bank transactions (money received and paid) are recorded each day.

A trial balance is a statement that lists the debit and credit balances of all ledger accounts on a specific date to check the mathematical accuracy of the books.