Question

What is cash book? Explain the types of cash book.

Answer 1

A cash book is a financial journal that contains all cash receipts and disbursements, including bank deposits and withdrawals.

Entries in the cash book are then posted into the general ledger.

Types of cash book :-

• A single column cash book to record only cash transactions.
• A double/two column cash book to record cash as well as bank transactions.
• A triple/three column cash book to record cash, bank and purchase discount and sales discount.
• A petty cash book to record small day to day cash expenditures