Data Structure
Networking
RDBMS
Operating System
Java
MS Excel
iOS
HTML
CSS
Android
Python
C Programming
C++
C#
MongoDB
MySQL
Javascript
PHP
Physics
Chemistry
Biology
Mathematics
English
Economics
Psychology
Social Studies
Fashion Studies
Legal Studies
- Selected Reading
- UPSC IAS Exams Notes
- Developer's Best Practices
- Questions and Answers
- Effective Resume Writing
- HR Interview Questions
- Computer Glossary
- Who is Who
Define cash books and its types
The word “cash” represents the monetary instruments (currency etc.) and the word “book” represents the record available in written format. Thus, a cash book can be defined as the record of business transactions in a particular period.
In other words, a cash book records all transactions of cash receipts and disbursements (includes both bank deposits and withdrawals). Cash book is divided into two parts namely, cash payments and cash receipts.
Transactions which are not recorded or are excluded in cash book are as follows −
- Transactions related to bank (payments made through checks in receiving or paid).
- Non-cash transactions.
- Discount making or discount received.
Cash book satisfies objectives of journal and a ledger
Cash book as journal
- Just like a journal, it records transactions in chronological order (as it happens).
- Follows the same procedure in posting transactions to ledger from cash book.
- Maintains special cash books for cash transactions.
- Records cash transactions according to debit and credit.
Cash book as ledger
- Same format as ledger.
- Follows the same T format as ledger.
- Cash book balances are transferred to trial balance.
- Serve purpose of cash account.
Types
The types of cash book are as follows −
Updated on: 13-May-2022
331 Views
Advertisements