Cashbook

A cash book is a book of original entry and also a ledger account that is used to record only cash transactions. It should be noted that cash transactions may not necessarily be the first incident to take place in the business for the organization may transact on credit whereby no immediate receipt or payment of cash (spot) is done. Nevertheless, the end result of any credit transaction is actual cash receipt or payment and it is at this point that the cash received or paid is recorded in the cash book. It should also be noted that, apart from recording cash transactions in a cashbook, there are other unique cash transactions that the cashbook accommodates, namely: contra entry transactions and petty cash transactions. Those two types of cash transactions are discussed under this section in addition to the main/common cash transactions. Cashbook is classified in to four categories, namely;

  1. Single column cashbook

  2. Two column cashbook

  3. Three column cashbook

  4. Petty Cashbook