Question

what is cash book

Answer 1

Cash book is used to record both the cash receipts and cash disbursements occurring in a business enterprises. It works as either a book of original entry as well as a ledger account. The entries relating to the receipts or payments of cash are recorded first in cash book and only after that posted to the relevant other ledger accounts. Also the cash book is recorded in a chronological order and balance is updated upto the time and will be verified on a continous basis by the respective person handling it. Usually there are three types of cash book which includes single column cash book, double column cash book and triple column cash book.

Single column cash book helps to record only cash based transactions.

Double column cash book includes both the cash related and bank related transactions.

Triple column cash book helps to record cash, bank, purchase discount and sales discount transactions.

SUMMARY:

However the cash book is different from cash account in few matters. A cash book is a separate ledger in which cash transactions are recorded, while a cash account is an account with a general ledger. We will debit cash account when inflow of cash occurs where's credits when outflow happens.