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Is "Cash Book" A Journal Or A Ledger?

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Bilal Ahmad Profile
Bilal Ahmad answered
Generally cash transactions are numerous. What is credit transaction today will be cash transaction tomorrow. In other words, all credit transactions are finally settled by cash. If like all other transactions cash transactions are also recorded primarily in Journal. So the Cash book is the substitute for the Cash Account. In fact, no separate Cash account is opened in the ledger; cash book serves the purpose of the cash account.

The entries in cash book are regarded as one aspect of the double entry system; the other aspect is posted to the ledger in the concerned account. L.C. Cropper remarked "every entry in the cash book makes one half of a double entry; the other half of the double entry appears on the opposite side of some account in the Ledger." From this angle, 'Cash Book is a Ledger'.

On the other hand, all cash transactions are primarily recorded in the Cash Book in order of date and thereafter posted to the concerned ledger accounts. Judging from this angle, 'Cash Book is a Journal'. Thus we see that a Cash Book is the 'mixture of Journal and Ledger'. According to Spicer & Pegler, "The cash book is in fact a ledger version, but due to the huge amount of entries completed in that, it is reserved in a separate book, this is known as a cash book, which is used also as a book of principal entry."
Katie Harry Profile
Katie Harry answered
Cash books are widely used in the organizations as the simple accounting books. The purpose of a cash book is to record the basic information of the cash receipts and the cash payments. Cash book shows the sources and utilization of the money in an organization. It helps the company to keep the separate books for receipts and payments. Therefore, cash book enhances the cash management of the companies.
Anonymous Profile
Anonymous answered
Cash book is a ledger.
Anonymous Profile
Anonymous answered
It is a journal, actually we are writing entries in cash book, that is cash being one aspect and the other is recorded in cash book

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