INTRODUCTION TO CASH BOOK

In my first post I said money is very important factor regarding any kind of business. So, every transaction combined with money. Therefore, we should be record that transaction 100% accurately. If not we cannot verify cash inflow & outflow of the company. First of all we have to record that transaction using primary books/primary ledger. Cash book is very important primary book out of other primary books.

WHAT IS CASH BOOK??????????????

Cash book is a two side document (also consider as account). We can record cash inflows and outflows in this document. We can identified three type cash books.

1.        Single column cash book.
2.        Two column cash book.
3.       Three column cash book.

Normally we use three column cash book .so other two type of cash books not important in presently. In my next post presented basic business transaction recorded primary books including cash books. You can see three column cashbook in below.

Cheers!

DEBIT SIDE					CREDIT SIDE
DATE	DESCRIPTION	DISCOUNT PAID	CASH	BANK	DATE	DESCRIPTION	DISCOUNT RECEIVED	CASH	BANK	DATE