5 uses of cash book

Cash Book format is prepared as a ledger A/c having two sides i.e. Debit and Credit and columns of Date, Particulars, Journal Folio, and Amount on each side. A Cash Book is an Original Entry (or Prime Entry) book in which all cash and bank transactions are documented chronologically.

When the business is small, it is easy to record every transaction in a single book called a ‘Journal’. Journal is also known as the book of original entry. But gradually, when the business expands, it becomes inconvenient to record such a large number of transactions in a single book.

Importance of cash book

As a result, a separate book is required for recording cash transactions. It is known as a ‘Cash Journal’ or a ‘Cash Book’.

Types of Cash Book

Mainly, there are two types of Cash Book:

1. Simple Cash Book or Single Column Cash Book

2.

Double Column or Two Column Cash Book

Apart from these two, Petty Cash Book is also maintained.

1. Format of  Simple Cash Book or Single Column Cash Book

Columns of a Simple Cash Book :

1.

Date: This column contains the date, month, and year of

cash book is prepared by whom

cash book is prepared by accountant of business