Define Cash book.
Cash book is a book of original entry
in which all the transactions relating
to cash receipts and payments are
recorded in chronological order.
.
Cash receipt is entered on the debit
side and cash payment is recorded
on credit side of the cash book.
.
There are three types of cash book:
– Single Column Cash Book : This
record only cash receipts and
payments. It has only one money
column on debit and credit side.
Cash received is entered on the debit
side and cash payments are entered
on the credit side.
.
– Double/ Two Column Cash Book:
This type of Cash book has two
columns of cash and discount on
both the debit and credit side.
.
– Three Column Cash Book : This
cash book has three columns of
cash, bank and discount on both the
debit and credit side.
At the end of specified period the
cash book is balanced. Excess of
debit balance is posted on credit
side as “By balance c/d” to balance
both the sides. From the start of the
next period the balance on the credit
side is brought down on the debit
side by “To balance b/d”

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