The
book in which all cash transactions (either cash
is received or paid) are primarily recorded
according to dates, is called 'Cash Book'.
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It is a cash book in which only and
only cash transactions are recorded. By
single column we mean "one amount column" on
each side of the Cash Book. One amount
column on the debit side in which inflow of
cash (cash received) is recorded and one
amount column on the credit side in which
outflow of cash (cash paid) is recorded. It
is generally maintained by such business
concerns which do not have bank accounts.
(small business concerns).
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At the
beginning of this chapter, it has been discussed
that Cash A/c and Bank A/c are two busiest
accounts in ledger and they should be removed
from the ledger to reduce its volume and size.
We have also discussed, how Cash A/c is removed
from the ledger and instead of it the Cash Book
is kept to record cash transactions.
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We
know, when cash is received from the debtors,
discount may be allowed to them. And when cash
is paid to creditors, discount may be received
from them. It means the cash and the discount
are very much related to each other.
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It is
another Cash Book which is maintained,
generally, in large business concerns to reduce
the burden of 'Main Cash Book', in which
numerous transactions involving petty (small)
amounts are recorded.
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