Cash Book - Format - Advantages - Classification - Examples
A Cash Book is a book in which all cash transactions, w het her cas h payme n ts or cas h receipts, are recorded chronologically (date-wise). Cash Book is a Journal as well as a Ledger because all the cash transactions primarily recorded in it so it is a journal. Also, we get the balance of all cash transactions in this book, so from this point of view, the cash book is a ledger. Note: T here is a differe nce b etwee n Cas h for Book a nd Cas h Book. Cash for b ook mea ns t hat you wa nt to sell your old, used or second h and textb ook, b ooks or half price b ooks for cash while cash b ook is b oth a jour nal and a ledger to record only cas h tra nsactions. Cash always shows favorable balance that is debit balance. However, if it shows unfavorable balance, then it is credit balance and it is not good sign for the business because liquidity position of the business is weakness to meet daily expenses or to repay the credit pay...