What is a cash book?
Before talking about the cash book, we would briefly explain what is cash. Cash is a current asset which consists of items used in day to day financial transactions as medium of exchange. In accounting and finance, cash includes, currency notes made of paper, coins, demand deposits, money orders, checks and bank overdrafts etc.
The following items cannot be treated as cash:
- Dishonored checks
- Post-dated checks
- Postage stumps
- Securities and special investments
- Trade advances to enployees
The cash balance in a business organization is of significant importance due to the following reasons:
- It is readily available to meet current obligations of any business organization.
- It is universally accepted as a mode of payment by creditors.
- The economic activities of any business involve a regular inflow and outflow of cash and cash equivalents.
Cash book
The cash book is used to record receipts and payments of cash. It works as a book of original entry as well as a ledger account. The entries related to receipt and payment of cash are first recorded in the cash book and then posted to the relevant ledger accounts. Moreover, a cash book is a substitute for cash account in the ledger. A company that properly maintains a cash book does not need to open a cash account in its ledger.
Types of cash book
There are four major types of cash book that companies usually maintain to account for their cash flows. These are given below:
- A single column cash book to record only cash transactions.
- A double/two column cash book to record cash as well as bank transactions.
- A triple/three column cash book to record cash, bank and purchase discount and sales discount.
- A petty cash book to record small day to day cash expenditures.
Good content
cash book is a current asset of items which consists in day by day fianancial transactions as medium of exchange
Yes
cash book is used to record reciep and payment of cash
Cash book is a book used to record the receipt and payment of cash
which of the following statement is not true?
1.cash book is a journal as well as a ledger
2.cash account shows either credit or debit balance
3.only cash transactions are recorded in cash book
4.bank account shows either debit or credit balance
please tell the aswer for this question
The answer is: 2
The cash account will always show a debit balance and will never show a credit balance.
what about a bank overdraft
only cash transactions are recorded in cash book.
I want to know how to prepare for cash book column
Ans.2 Only debit balance show
3
3
2
Ans is 2
NUMBER ONE IS WRONG
3
The answer is 2, because balances are shown in the ledger,
1. Cash book is a journal as well as a ledger
The answer is option 3. But it could be also correct if the cash we are talking of consist of bank transactions.
number 2 statement is not a true statement.
Statement 1 is true
Cash book is a journal as well as a ledger
2 . Is not true.Reason Cash account can only show debit balance or zero balance but not credit balance. It is based on the fact you cannot pay when you have spent all your hard currency.
4
HI, what about let say for logistic, your are sending the item for delivery at post office so…..Credit cash ( payment ) and Debit delivery ?
What is Cash Book for all bank Account?
it is very useful and informative thank u so much
Nice and informative
EXPLANATION CAN BE MORE DETAILED
WOW I UNDERSTOOD VERY EASILY
excellent
very beautifully explained thank u so much for such nice explanation
and also thank u
I will be always here to be current
trust book will soon be invented
cash book: is a book of account that record all day to day transaction made during a period of time
I want to download information
what are the methods to manage these cashbook
Cashbook is a journal as well as a ledger, explain.
Cash book is manage and control only by a treasurer
The cash book is the ledger that contains the cash and bank accounts only.
I took over from a colleague some weeks ago as Head of finance and recently realized that the
Cashbook he handed over to me can not be found, what should i do and what are the consequences?
All is correct.
Do we record any sales return in the cash book? If yes, is it in the debit or credit side?
it all making sense now
cash book is a record book
Why Cash Book is not necessary to open a Cash Account in the Ledger ?
cash book is a book use in recording day to day transaction on cash
Cash book is the book of original or book of prime entry used in recording cash receipt and cash payment.
No.2
Trial balance and ledger which one is an account?
thanks I understand