Give the similarities of cash book with a ledger.

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Solution

(i) Form of cash book closely resembles a ledger account. It has two equally divided sides having identical columns. The left side (receipts side) is the debit side and the right side (payment side) is the credit side.

(ii) Cash book itself serves as a cash account also and as such when a cash book is maintained, the cash account is not opened in the ledger. The cash book hence is apart of ledger also.

(iii) It is balanced just like a ledger account.

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Similar questions

Give the similarities of cash book with a journal.

From the following Cash Book (with cash and Bank columns) prepare necessary Ledger Accounts and balance them.

Cash Book (with Cash & Bank Columns)
Dr.						Cr.
Date	Particulars	L.F.	Cash Rs	Bank Rs	Date		Particulars	L.F	Cash Rs	Bank Rs
2011 Apr.					2011 Apr.
1	To Balance b/d		400	1,000	1		By Purchases A/c		700
2	To Ram ‘s A/c		980		3		By Rent A/c			200
3	To Sales A/c			4,000	10		By Sita’ s A/c		300
7	To Interest A/c		120		8		By Salaries A/c			450
10	To Sales A/c		500		10		By Purchases A/c			1,350
25	To Bank A/c		2,000		30		By Cash A/c			2,000
					30		By Balance c/d		3,000	1,000
			4,000	5,000					4,000	5,000
May 1	To Balance b/d		3,000	1,000

Briefly state how the cash book is both journal and a ledger?

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