what is the difference between cash book and subsidiary book ?
Answers
Answer:
Subsidiary book may be defined as a book of prime entry in which transactions of a particular category are recorded. ... Whereas Cash book is a type of Subsidiary Book in which only payments and receipts which are carried in Cash are recorded .
Explanation:
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Answer:
It is both a subsidiary book (book of original entry) and principal book. When a cash book is maintained, transactions of cash are not recorded in the journal. As all the cash transactions are recorded for the first time in the cash book, it is, therefore, a book of original entry.
Explanation:
Also, when a cash book is prepared, cash account in the ledger is not prepared. In this way, cash book represents the cash accounts and hence, becomes the principal book of accounts. As such, the cash book is a subsidiary book as well as a principal book.
It records all the cash and bank receipts and payments. It is a book of original entry as we record transactions in it for the first time from the source documents such as vouchers, invoices, etc.
A cash book has a debit and a credit side both. Thus, it is similar to a ledger account. Hence, it acts as a subsidiary book as well as a ledger account.
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