Question

Direct deposit made by customer into your bank is recorded on the ______ side of the cash book.

• A. payment
• B. credit
• C. receipt
• D. both

Answer 1

Answer: (C)

receipt

Cash book is a book in which all transaction relating to cash receipts and cash payments are recorded. It starts with the cash or bank balances at the beginning of the period. Generally, it is made on monthly basis. This is a very popular book and is maintained in all organisations, big or small, profit or not-for-profit. It serves the purpose of both journal as well as the ledger account. It is also called as the book of original entry. The left side of the cash book shows the receipts of the cash whereas the right side of the cash book shows all the payments made in cash. The accounts appearing on the debit side for the cash book are credited in the respective ledger accounts because cash has been received in respect of them. Direct deposit made by customer into your bank is recorded on the receipts side of the cash book.