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Question
Goods worth Rs. 45,000 sold to Tarun for cash will be recorded in_________.
Goods worth Rs. 45,000 sold to Tarun for cash will be recorded in_________.
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Solution
The correct option is A 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. Generally, it is made on monthly basis.
This is very popular book and is maintained by all organisations, big or small, profit or not-for-profit. It serves the purpose of both journal as well as the ledger (cash) account. It is also called the book of original entry.
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.
For example, goods worth Rs. 45,000 sold to Tarun for cash will be recorded in the 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. Generally, it is made on monthly basis.
This is very popular book and is maintained by all organisations, big or small, profit or not-for-profit. It serves the purpose of both journal as well as the ledger (cash) account. It is also called the book of original entry.
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.
For example, goods worth Rs. 45,000 sold to Tarun for cash will be recorded in the cash book.
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