Question

The features of journal and ledger are found together in cash book.

• A. True
• B. False

Answer 1

The correct option is A True

A cash book is a book of prime entry as well as of secondary entry. In other words, it is a subsidiary book as well as a ledger. When an organisation maintains the subsidiary books, it records all the transaction related to cash, bank and discount only in the Cashbook. Later, they are posted to the individual ledger accounts from there. However, when we balance a Cashbook we get to know the balance of cash, bank, discount allowed and discount received. Thus, we do not need to prepare a separate ledger account.

Thus, the correct answer is A.