Cash book in accounting meaning

It works as a book of original entry as well as a ledger account. What is a cash book definition, explanation and types. Cash book is regularly reconciled with the bank statements as an internal auditing measure. A cash book is that unique book of accounts which fulfils the objective of both, a journal and a ledger. Cash book is a separate book of accounts in which all the cash transactions of the company are entered with respect to the corresponding date and it is different from the cash account where posting is done from the journal. Definition and explanation of cash book accounting details. A cash book serves the purpose of both the journal and. Cash book is the one in which all the cash receipts and cash payments including the funds that are deposited in the bank and funds which are withdrawn from. The entries related to receipt and payment of cash are first recorded in the cash book and then posted to the relevant ledger accounts. Cash book is a book of original entry in which transactions relating only to cash receipts and payments are recorded in detail. An accounting book that is composed of cash receipts plus disbursements. A doubletwo column cash book to record cash as well as bank transactions.

Thus we see that a cash book is the mixture of journal and ledger. It is a book containing the original entry and the final entry which means that cash book serves as the general ledger. When cash is received it is entered on the debit or left hand side. Let us make indepth study of the meaning and features of cash book of original entry. A single column cash book to record only cash transactions. Cash book definition, types accounting format of cash book. Cash book definition, example and format of cash book. Journal in which all cash receipts and payments including bank deposits and withdrawals are recorded first, in chronological order, for posting to general ledger. A cash book is a financial journal that contains all cash receipts and payments, including bank deposits and withdrawals.

Entries in the cash book are then posted into the general. The entries in cash book are regarded as one aspect of the double entry system the other aspect is posted to the ledger in the concerned account. A company that properly maintains a cash book does not need. Entries in cash book are posted then to the corresponding general ledger. A triplethree column cash book to record cash, bank and purchase discount and sales discount. The cash book is a record of receipts and payment transactions in date order and has many different formats. Cash book meaning in the cambridge english dictionary. Cash book financial definition of cash book financial dictionary. Receipts are recorded on the debit the left hand side, and payments are recorded on the credit right hand side. Similarly, when cash is paid out the same is recorded on the credit or right hand side of the cash book. A cash book is a separate ledger in which cash transactions are recorded, whereas a cash account is an account within a general ledger.

A cash book is set up as a subsidiary to the general ledger in which all cash transactions made during an accounting period are recorded in. Cash book is a book of original entry in which transactions involving cash are to be recorded as and when they occur. Moreover, a cash book is a substitute for cash account in the ledger. Cash book is a primary book of original entry and includes all cash transactions of the enterprise in a chronological order. The cash book is used to record receipts and payments of cash.