Question

Distinguish between cash account and cash book.

Answer 1

The differences between cash account and cash book are

$\begin{array}{cc}\text{Cash account}& \text{Cash book}\\ \text{It is an account in the ledger}& \text{It is a separate book maintained for recording cash}\\ & \text{transactions}\\ \text{In records only one aspect of a trnasaction i.e., cash.}& \text{In records both the aspects of a transaction.}\\ \text{Cash account is opened in the ledger and posting is}& \text{It is a book of original entry because all cash transactions}\\ \text{done in this account from journal.}& \text{are first of all recorded in cash book and then posted}\\ & \text{from cash book to various accounts in the ledgers.}\\ .\text{When transactions of cash are recorded in journal, it}& \text{When transactions of cash are recorded in cash book,}\\ \text{is necessary to open a cash account in the ledger.}& \text{there is no necessity to open a cash account in the}\\ & \text{ledger.}\end{array}$