Question

why cash book is a subsidiary book and principal book​

Answer 1

Answer:

It is a subsidiary book because all cash transactions are, first recorded in the cash book and then from cash book posted to various accounts in the ledger. ... As receipts of cash are entered on the debit side and cash payments on the credit side; there is no need of cash account in the ledger.

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Answer 2

Answer:

All the cash transactions of a business entity are recorded first in the cash book. It is therefore called as the book of original entry or Subsidiary book.

A cash book serves the purpose as cash account and bank account as well, which is a part of ledger, so no separate cash account is prepared. Thus cash book is a part of ledger as well. A ledger is a Principal book of accounts.

Therefore, a cash book is both a Subsidiary book and a Principal book.