NCERT Solutions For Class 11 Financial Accounting – Recording of Transactions-I
NCERT Solutions For Class 11 Financial Accounting – Recording of Transactions-I Short Answer Type Questions Q1. State the three fundamental steps in the accounting process. Answer : The fundamental steps in the accounting process are diagrammatically presented below. Q2. Why is the evidence provided by source documents important to accounting? Answer : The evidence provided by the source document is important in the following manners: 1. It provides evidence that a transaction has actually occurred. 2. It provides important and relevant information about date, amount, parties involved and other details of a particular transaction. 3. It acts as a proof in the court of law. 4. It helps in verifying transactions during the auditing process. Q3. Should a transaction be first recorded in a journal or ledger? Why? Answer : A transaction should be recorded first in a journal because journal provides complete details of a transaction in one entry. Further, a journal forms the basis for pos...