What is a Cash Book?
A cash book is a financial journal that records all cash transactions of a business. It serves as a subsidiary ledger to the general ledger, specifically tracking cash inflows and outflows. Cash books can be maintained in various formats, including single-column, double-column, or multi-column, depending on the complexity of the transactions being recorded.
Types of Cash Books
Single Column Cash Book: This format records only cash transactions. It’s straightforward and ideal for small businesses with limited cash transactions.
Double Column Cash Book: This version includes two columns—one for cash transactions and another for bank transactions. It’s useful for businesses that frequently deal with both cash and bank transactions.
Triple Column Cash Book: This cash book has three columns: cash, bank, and discount. It’s beneficial for businesses that offer discounts or have complex financial transactions.
