What is the cash book? Explain the types of the cash book.
What is the cash book? Explain the types of the cash book.
A cash book is also known as book of original entry in which all transactions related to cash receipts and cash payments are recorded. All cash deposits and withdrawals are recorded in a sequential order. Cash receipts are recorded in cash column and bank deposits are recorded in bank column, and all cash deposits are added in cash column, cheque payment get recorded in credit side under bank column. It serves as a principal book.
Types of cash book are:
(i) Single Column Cash Book: This is an ordinary cash book containing only one column for cash and prepared as a cash account in the ledger.
(ii) Double Column Cash Book: This is the cash book containing one more column for bank along with the cash column as it serves the.purpose of cash and bank account.
(iii) Triple Column Cash Book: This is the cash book containing one additional column apart from the rest of the two column, this column is for Discount. In this cash book, cash discount is also recorded.
(iv) Petty Cash Book: Petty cash book is maintaihed by the busines to record petty cash expenses of the business such as conveyance, cartage, postage, telegram and other expenses (collectively recorded under miscellaneous expenses).
A cash book is also known as book of original entry in which all transactions related to cash receipts and cash payments are recorded. All cash deposits and withdrawals are recorded in a sequential order. Cash receipts are recorded in cash column and bank deposits are recorded in bank column, and all cash deposits are added in cash column, cheque payment get recorded in credit side under bank column. It serves as a principal book.
Types of cash book are:
(i) Single Column Cash Book: This is an ordinary cash book containing only one column for cash and prepared as a cash account in the ledger.
(ii) Double Column Cash Book: This is the cash book containing one more column for bank along with the cash column as it serves the.purpose of cash and bank account.
(iii) Triple Column Cash Book: This is the cash book containing one additional column apart from the rest of the two column, this column is for Discount. In this cash book, cash discount is also recorded.
(iv) Petty Cash Book: Petty cash book is maintaihed by the busines to record petty cash expenses of the business such as conveyance, cartage, postage, telegram and other expenses (collectively recorded under miscellaneous expenses).
