Cash book    

              Cash book is a book of original entry in which only cash receipt and cash payments are recorded. Cashbook is divided into two sides receipt side and payment side.  Cash book is a chronological record of all cash transactions. when cash check or draft is received the details are recorded on the left hand side which is known as the receipt side or debit side. when cash cheque or a draft is issued for settling debts details are recorded on the right hand side. which is known as payment side or credit side.The cash book serves the purpose of book of original entry and also represent cash account in Ledger.
                In fact it is more of a ledger than a journal. It is a journal since cash transaction are recorded in a chronological Manner.


It is a ledger since it constitutes a declassified record of all cash transactions in the form of the ledger  with narration and helps in finding out cash balance at the end of the particular accounting period Thus it can be said that cash book serves dual purpose of journal as well as Ledger.

Types of cash book 

             There are different types of Cash book. Cash book cash book can be maintained in different ways depending on the need of and nature of business concerns. following are the different types of Cash book.

1) Simple Cash Book

2) Cash book with cash and Bank columns two columns cash book

3) Petty cash book


1) Simple Cash Book 

   Simple cash book Simple cash book has one amount column on each of receipt side and payment side. It records only cash receipt and payments. This cash book is suitable for traders operating on a very small scale. The cash book is prepared to keep record of all cash transactions and find the cash balance at the end of the particular accounting period.


2) Cash book with cash and Bank columns two columns cash book 

                     A businessman, who indulges in a number of Banking transaction opens a current account with the bank. In order to make a recording easy a cash book with cash and Bank column is prepared. It helps in grouping transaction which are interrelated thereby reducing time required to access cash and bank balance. This cash book has to amount columns on a receipt side and payment side. Bank columns appearing in two column cash book represent Bank current account.

3) Petty cash book 

      A business enterprise has various departments like production, finance, research and development has a number of the repetitive transaction involving small amount. It is not practical to pay for small expenses by cheque. Moreover recording these transactions in the main cash book will lead to overburdening the cash book. Control over cash balance and cash payments Will be lost. Hence, trader maintains a separate cash book to record small expenses which are repetitive in nature and cannot be paid by cheque. This cash book know as "Petty Cash Book



[See in detail...... Petty Cash book ]


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