CASH BOOK

Cash book is the book in which all transactions concerning cash receipts and cash payments are recorded. Cash Book is in the form of an account. It serves the purpose of Cash Account also. On the debit side, all cash receipts are recorded while on the credit side, all cash payments are recorded. In case of cash transactions, only a single aspect of transactions is recorded in ledger because the other aspect has to be recorded in Cash Book. Cash Book thus serves the purpose of a book of original entry as well as that of a ledger account.

A cash book has the following features:

(a) Only cash transactions are recorded in chronological order in the cash book.

(b) It performs the functions of both journal and ledger at the same time.

(c) All cash receipts are recorded on the debit side and all cash payments are recorded on the credit side.

(d) It records only one aspect of transaction i.e. cash.