What is cash book |Types of cash book

𝐖𝐡𝐚𝐭 𝐢𝐬 𝐚 "𝐜𝐚𝐬𝐡 𝐛𝐨𝐨𝐤"?

Cash book is a subsidiary book. It works as a book of original entry two in which cash and bank transactions are recorded. The cash book is used to record the receipt and payment of cash. The receipt is recorded on the debit side of the cash book while the payment is recorded on the credit side.

𝐓𝐲𝐩𝐞𝐬 𝐨𝐟 "𝐜𝐚𝐬𝐡 𝐛𝐨𝐨𝐤"

There are four types of cash books. Which is usually for maintaining enterprise.

1. A single-column cash book to record only cash transactions.

1. Double/two-column cash book to record cash and bank transactions.

1. Triple/three-column cash book to record cash, bank and purchase discounts and sale discounts.

1. Petty cash book to record small day-to-day cash expenditures. (is the book which is used for the purpose of recording expenses involving small accounts.)

𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐬 𝐨𝐟 "𝐜𝐚𝐬𝐡 𝐛𝐨𝐨𝐤"

1. Only cash and bank transactions are recorded in the cash book.

1. Receipt cash and cheque are recorded on the debit side payment cash and cheque are recorded on the credit side.

1. It records only one aspect of the transaction.

1. It performs both functions journal and ledger at the same time.