Question

difference between cash book and cash account

Answer 1

cash book stores the data of cash

Answer 2

$\text{\large{\underline{\underline{ cash book}}}}$

• It is separate book which is maintained to record all cash transactions.

• It is a book of Original entry since all cash transition are first recorded in it and then posted from this book to various accounts in ledger

• When cash transactions are recorded in cash book, there is no necessity to open cash account in the ledger.

• It records both the aspects of some transactions.

$\text{\large{\underline{\underline{ cash account}}}}$

• It is one of the various accounts kept in the ledger.

•Cash Account is kept in the ledger and posting in this account is done from journal.

• when transactions of cash are also recorded in journal it becomes necessary to open a cash account in the ledger.

• If records one aspect of transaction, I. e cash.