Question

Additional cash introduced in business is recorded in ______.

• A. Purchase book
• B. Cash book
• C. Journal proper
• D. Return inward book

Answer 1

The correct option is B Cash book

Cash book is a book in which all transactions relating to cash receipts and cash payments are recorded. It starts with the cash or bank balances at the beginning of the period.

When a cash book is maintained, transactions of cash are not recorded in the journal, and no separate account for cash or bank is required in the ledger. Any additional cash introduced in the business is also recorded in the cash book.