1. CASH BOOK
A cash book is a book of prime entry. All cash transactions are recorded in the “cash Book”
It also serve the purpose of a ledger account and therefore, the cash account and bank account are maintained in the general ledger. Balances in the cash book are taken directly to the trial balance.

2. FEATURES OF CASH BOOK Too keep records of only cash transactions
All receipts are recorded in debit side
All payments are recorded in credit side
Chronological (date wise) transaction recording of all transactions.
Performs functions of both journal and ledger

3. OBJECTS/NEED OF CASH BOOK
To find out the total cash receipts and cash payments during a given period
To ascertain the balance of cash in hand and at bank anytime without actually counting cash and examining Bank passbook
To verify the correctness of cash in hand and bank

4. Types of cash book Simple cash book Two-column cash book
Three-column cash book
Petty cash book

5. Simple column cash book
Prepared like cash account in ledger
All cash receipts are entered in amount column on debit side and all cash payments are appeared on credit side of the amount column
Cash book is closed and balanced at the end of the month

6. Simple Cash Book Example: Date Receipts F $ Payments 2012 Jan6 Sales
Purchased goods for cash $10 000 “
Jan6
Sold goods for cash $
Jan8
Paid rent $1 000
Simple cash book
Date
Receipts F $
Payments
2012
Jan6
Sales
25 000
Jan1
Purchases
10 000
Jan8
Rent
1 000
Jan31
Balance c/d
14 000
Feb1
Balance b/d

7. To be continue….