CBSE Class 11-commerce Answered
note on cash book
Asked by prashilanaik21 | 06 Mar, 2020, 01:37: PM
Expert Answer
Meaning of a Cash Book:
- It is a type of subsidiary book which records only cash and bank transactions in chronological order.
- All receipts in cash (including cheque) are recorded on the debit side, whereas all payments in cash (including cheque) are recorded on the credit side of the cash book.
Features of a Cash Book:
- It records only cash and bank transactions.
- It takes care of only one aspect of the transactions, i.e., cash/bank.
- It acts as both, a journal as well as a ledger for all cash transactions.
- It is considered as a subsidiary book as it provides basis for recording transactions in the ledger.
- The balances of Cash book are directly entered into Trial Balance which shows that it may be treated as a part of ledger. Thus it may be regarded as Principal Book too.
Kinds of Cash Book:
- Simple cash book or Single column cash book (Cash transactions only): It is used for recording cash transactions only. It looks similar to an account with left-hand side for recording cash receipts and right-hand side for cash payments.
- Double-column or Two-column Cash Book: It is used for recording cash and bank transactions. It has two columns on each side, one column to record cash transactions and the other column to record bank transactions.
- Triple column cash book (Cash, bank and discount transactions): It has 3 columns on each side to record transactions involving cash, bank and discount. It is used mainly by large firms who make and receive payments in cash and bank and who frequently receive and allow discounts.
Answered by Surabhi Gawade | 06 Mar, 2020, 02:54: PM
Application Videos
-
Introduction to Errors and its Rectification ...
This video explains the various types of Errors along with some examples th... -
Classification and Rules of Accounts ...
This video explains the various Classifications of Accounts along with thei... -
Preparation of a Trial Balance
This video teaches the systematic process of preparing a Trial Balance from... -
Effect of Adjustment Transactions on Accounting Equatio ...
This video explains the Effect of Adjustment Transactions on Accounting Equ...
Concept Videos
-
Meaning, Attributes and Branches of Accounting ...
This video explains the Meaning, Attributes and Branches of Accounting -
Accounting Process and Role of Accounting in Business ...
This video explains the complete Accounting Process along with the Role of ... -
Objectives and Functions of Accounting
This video explains the Objectives and Functions of Accounting -
Meaning, Qualitative Characteristics and Users of Accou ...
This video explains the Meaning, Qualitative Characteristics and Users of A... -
Introduction to Accounting Principles ...
This video introduces the concept of Accounting Principles
CBSE 11-commerce - Accountancy Part I
Asked by sunilmadhe2005 | 05 Jan, 2022, 05:00: AM
ANSWERED BY EXPERTCBSE 11-commerce - Accountancy Part I
Asked by raveendranrishika | 10 Jun, 2020, 01:24: AM
ANSWERED BY EXPERTCBSE 11-commerce - Accountancy Part I
Asked by prashilanaik21 | 06 Mar, 2020, 01:37: PM
ANSWERED BY EXPERTCBSE 11-commerce - Accountancy Part I
Asked by Harjotkaur4m | 29 Feb, 2020, 10:14: PM
ANSWERED BY EXPERTCBSE 11-commerce - Accountancy Part I
Asked by malavikavimal88 | 29 Feb, 2020, 09:10: PM
ANSWERED BY EXPERTCBSE 11-commerce - Accountancy Part I
Asked by Kashishdhanani30 | 27 Feb, 2020, 02:37: AM
ANSWERED BY EXPERTCBSE 11-commerce - Accountancy Part I
Asked by diyamundra44 | 21 Feb, 2020, 03:46: PM
ANSWERED BY EXPERTCBSE 11-commerce - Accountancy Part I
Asked by sahilbajpai2001 | 11 Feb, 2020, 11:54: AM
ANSWERED BY EXPERTCBSE 11-commerce - Accountancy Part I
Asked by Vanshohri968 | 07 Feb, 2020, 10:51: AM
ANSWERED BY EXPERTCBSE 11-commerce - Accountancy Part I
Asked by Palashsaha411 | 20 Jan, 2020, 06:22: PM
ANSWERED BY EXPERT
