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What Is Cash Book?

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Anonymous Profile
Anonymous answered
A book of original entry for cash and bank receipt and payment.
Bilal Ahmad Profile
Bilal Ahmad answered
The book in which all cash transactions (either cash is received or paid) are primarily recorded according to dates, is called 'cash book'.  A cash book has the following features:  A) It plays a dual role. It is both a book of original entry as well as a book of final entry. All cash transactions are primarily recorded in it as soon as they take place; so it is a journal (a book of original entry). On the other hand, the cash aspect of all cash transactions is finally recorded in the Cash Book (no posting in Ledger); so a cash book is also a ledger (a book of final entry).    B) Only one aspect of cash transaction is posted to the ledger account. The other aspect  i.e. Cash aspect, needs no posting in Cash A/c. Since the cash book is the substitute for cash A/c, no Cash A/c is opened in the ledger.  C) It has two identical sides, left hand side, the debit side and right hand side, the credit side.  D) All the items of cash receipts are recorded on the left hand side and all items of cash payments on the right hand side in order of date.  E) The difference between the total of two sides shows cash in hand.  F) Its balance is verified by counting actual cash in the cash box.  G) It always shows debit balance. It can never show credit balance.
thanked the writer.
Anonymous
Anonymous commented
Why cash book always shows debit balance?
Anonymous
Anonymous commented
Cash Book is the book in which all cash receipts and payments (including bank deposits and withdrawals) are primarily recorded, in chronological order, for posting to general ledger.
The purpose of a cash book is to record the basic information of the cash receipts and payments. Therefore, cash book enhances the cash management of the companies
Anonymous Profile
Anonymous answered

A Cash Book is a very important document in accounting. It is a type of accounting record that has details of all the activities in cash. It includes all the cash payments and all the cash received by the company. It helps in keeping track of the money that is coming inside the company and all the money that is being spent.

Cash books make way for further accounting records. Cash books are used in almost all kinds of organizations in a hard form i.e paper form. A person or a number of persons are designated to keep these cash books up-to-date. That means that whatever transaction occurs in a particular day is recorded in the cash book under a specific account title. These accounts are then transferred onto the ledger books.

Normally each entry in the cash book has a series of information about the entry. This information includes the date of transaction, the type of transaction, amount paid or received, source of the cash received or paid, who has received the cash or has paid the cash etc. Cash book is an easy and inexpensive way of keeping track of all the business transactions. That is why it is used all around the world.

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