what is cash book
and explain its features
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Answers
The book in which all cash transactions (either cash is received or paid) are primarily recorded according to dates, is called Cash Book..
Features :-
1) It plays a dual role. It is both a book of original entry as well as a book of final entry. All cash transactions are primarily recorded in it as soon as they take place; so it is a journal (a book of original entry). On the other hand, the cash aspect of all cash transactions is finally recorded in the Cash Book (no posting in Ledger); so a Cash Book is also a Ledger (a book of final entry).
2) Only one aspect of cash transaction is posted to the ledger account. The other aspect ( i.e. cash aspect) needs no posting in Cash A/c. Since the Cash Book is the substitute for Cash A/c, no Cash A/c is opened in the ledger.
3) It has two identical sides-left hand side, the debit side and right hand side, the credit side.
4) All the items of cash receipts are recorded on the left hand side and all items of cash payments on the right hand side in order of date.
Hope it helps you B2
Explanation:
Cash book is a book of original entry in which transactions involving cash are to be recorded as and when they occur. It has two sides viz. ‘Debit Side’ in which all receipts are to be recorded and ‘Credit Side’ in which all payments are to be recorded.