Difference Between Ledger And Cash Book

A Ledger is the Books of Final Entry to classify and to provide specific information about Different Types of Accounts separately while a Cash Book is both a Journal and a ledger. It shows only daily cash transaction chronologically (Date-Wise) and also shows the closing balance of Cash Account for the accounting period.

A ledger can not play the role of a journal to show the details of daily transactions while a cash book can do so as all the cash transaction are primarily recorded in the cash book while in ledger accounts are finally transferred to it and in order to know the details of Transactions, we need to check the general journal and Special Journal of the concerned accounts.

A Ledger shows detailed records and closing balance of a specific account transferred from Journal at the end of the accounting period while a Cash Book is prepared to show only Cash Transactions and closing balance of cash at the end of the accounting period, so it is both a Journal and a Ledger. So, we can say that a Ledger is the Books of Final Entry while a cash book is a Book of Original Entry as well as a Book of Final Entry.

There are two types of ledger i.e., one is Subsidiary Ledger and second one is Control Ledger while there are the types of cash book which are single column, two column and three column cash book.