What is difference between cash account and cash book?

The major differences between a cash account and cash book are as follows −

Cash accountCash book
  • It is an account in a ledger.

  • Transactions are made from journals.

  • Serves the purpose of a ledger.

  • Dependent on journal daybook.

  • One type of cash account.

  • Represents only cash balances.

  • Journal folio.

  • Cash transactions are recorded in the journal and then posted in a cash account.

  • Don’t have any narrations.

  • It is a separate book.

  • Transactions are recorded directly.

  • Serves as both journal and ledger.

  • Independent of other books.

  • Three types of cash books.

  • Cash balances, bank balances, discount allowed, discount received.

  • Ledger folio.

  • Transactions are recorded directly.

  • It has narration.

Updated on: 24-Jul-2020

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