The cash book
The cash book is often a book of prime entry. It is used to record receipts and payments of cash into the business bank account. The cash book has two sides, a side for receipts of money and a side for
payments. Both sides have a number of columns so that cash receipts and payments can be analysed to make it easier to construct journals for double entry. A business can analyse the amounts received and paid in any way it chooses.
Types of cash book
The cashbook records all the transactions that involve receipts and payments of cash and deposits in and withdrawals from the bank in a chronological order. The debit side represents the receipts side and the credit side represents the payments side.
There are four basic types of a cash book.
- Single column cash book
- Two column cash book
- Triple column cash book
- Petty cash book
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