Category: Cash Book

Mr. A maintains a Simple cash Book for his business. He observes that with the convenience offered by banking transactions, there is an increase in his number of banking transactions. He feels the need for a book in which he can side by side enter his cash as well as banking transactions as both the accounts are very closely related. A book, which like cash book serve the purpose of a Journal as well as a Ledger. A book which could show the balance of both his Cash and Bank…

Jenny is running a Garment Business. Most of her transactions are cash in nature i.e. immediate payment is received or paid in cash or by cheques. Her Journal is over filled by cash transactions. She wonders if there is any particular type of book which records all her cash transactions. The answer is, Yes! There is a book of Original Entry, which serves the purpose of both a Journal as well as ledger for cash transactions and that is Cash Book. It is a book in which we record all…