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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Basis of Difference |
Cash Book |
Cash Account |
|---|---|---|
Meaning |
Cash Book is a separate book in which cash transactions are directly recorded. | A Cash Account is an account in a Ledger in which posting is made from the journal. |
Purpose |
It serves the purpose of both journal and ledger and hence cash transactions need not be primarily recorded in Journal. | It serves the purpose of a Ledger only. If Cash A/C is opened in the Ledger, all-cash transactions are first recorded in the journal. |
Dependency |
The cash book is not dependent on any other book because it is the original entry book. | The cash account is dependent on the journal daybook. |
| Types | There are three types of cash books | There only a single type of cash account as similar to any ledger account. |
| Balances represent | It represents Four types of balances
|
It represents only the Cash balance. |
| Folio | It has a Ledger folio which represents the page no of the ledger account where the transaction posted in the related Ledger account. | It has a Journal folio which represents page no of Journal Book from where the transaction is posted in this account. |
| Recording | The cash transactions are directly recorded in the cash book. | The cash transactions are first recorded in the journal book and then posted in the cash account. |
| Narration | Yes, Cashbook has a narration. | No, the Cash account does not have narrations. |
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
The Cash Book and Cash account are maintained for the same purpose i. e. recording all business cash transactions in the books of accounts, but there is a…
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Yes — this page includes a short interactive quiz so you can check your understanding straight away.
