Is cash book a journal or a ledger? EXPLAIN
Answers
Answer:
Cash Book is both a Journal and a Ledger
Some accountants term cash book as a journal and some other term it as a ledger. Modem accountants term cash book both as journal and ledger.
Cashbook is a journal; because:-
- After the occurrence of transactions, these are recorded in the cash book in chronological order of dates with explanations like a journal.
- How transactions are posted into ledger from the journal is followed in case Of posting transactions to the ledger from cash book.
- As separate special journals are maintained for various transactions similarly cash book is maintained for cash transactions.
- Cash transactions are recorded in the cash book according to debit and credit.
- Other than cash book no subsidiary journal is maintained for cash transactions.
For all these features of the cash book, it is called a journal.
Cashbook is a ledger; because:-
- The format of the cash book is similar to that of a ledger account.
- Like ledger account, the cash book consists of two sides – debit side and credit side if it is prepared in ‘T’ format.
- Like ledger accounts, the balance of cash book is determined and transferred to trial balance.
- The cash book serves the purpose of the cash account. In such a case, the cash account is not prepared in the ledger.
hope it helps..
Answer:
Explanation:
Cash Book is both a Journal and a Ledger
Some accountants term cash book as a journal and some other term it as a ledger. Modem accountants term cash book both as journal and ledger.
Cashbook is a journal; because:-
After the occurrence of transactions, these are recorded in the cash book in chronological order of dates with explanations like a journal.
How transactions are posted into ledger from the journal is followed in case Of posting transactions to the ledger from cash book.
As separate special journals are maintained for various transactions similarly cash book is maintained for cash transactions.
Cash transactions are recorded in the cash book according to debit and credit.
Other than cash book no subsidiary journal is maintained for cash transactions.
For all these features of the cash book, it is called a journal.
Cashbook is a ledger; because:-
The format of the cash book is similar to that of a ledger account.
Like ledger account, the cash book consists of two sides – debit side and credit side if it is prepared in ‘T’ format.
Like ledger accounts, the balance of cash book is determined and transferred to trial balance.
The cash book serves the purpose of the cash account. In such a case, the cash account is not prepared in the ledger.
hope it helps.