Question

Cash book is a book of original entry.

• A. True
• B. False

Answer 1

The correct option is A True

Cash book is a primary book of original entry and includes all cash transactions of the enterprise in a chronological order.

A cash book is a book of original entry because it is the subsidiary book that records all the cash transactions of the business from the source document.

Hence, cash transactions of a business are first recorded in the cash book, and thus, it is termed as a book of original entry.