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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.
The types of cash book are as follows −
- Explain columnar petty cash books and give its format
- What are Petty cash books?
- State the importance and features of cash books
- How are contra entries done in the cash books?
- Explain Merger and its types
- Explain acquisition and its types
- Explain double column cash book and its format
- Prepare a ledger balance by using columnar petty cash books
- Define capitalisation and its type in financial management.
- Explain the different types of books of accounts
- How postings are made in ledger accounts with single column cash books?
- What is a single column cash book and explain its format?
- What is a triple column cash book and explain its format?
- What is Multiplexing and what are its types?
- What is Spoofing and what are its types?