Cash Book


DEFINITION of 'Cash Book'

A financial journal that contains all cash receipts and payments, including bank deposits and withdrawals. Entries in the cash book are then posted into the general ledger. The cash book is periodically reconciled with the bank statements as an internal method of auditing.


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Larger firms usually divide the cash book into two parts. The first part is the cash disbursement journal that records all cash payments, such as accounts payable and operating expenses. The second part is the cash receipts journal, which records all cash receipts, such as accounts receivable and cash sales.

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  1. What is the difference between a Debit Order and a Standard Order in a bank reconciliation?

    While both debit orders and standard orders represent recurring transactions that must be considered in bank reconciliations, ... Read Full Answer >>
  2. Why is the use of contra accounts so important for maintaining ledgers?

    Contra accounts have been used in financial accounting to verify the balance of another corresponding account since Renaissance ... Read Full Answer >>
  3. What are the accounting entries when a company issues a callable bond?

    Callable bonds are listed as long-term liabilities on balance sheets, similar to other types of bonds, unless they mature ... Read Full Answer >>
  4. What's the difference between the general ledger and a general journal?

    The difference between a general ledger and the general journal is that the general journal is considered the initial book ... Read Full Answer >>
  5. How do you calculate credits and debits in the general ledger?

    A general ledger acts as a record of all accounts and their transactions. Balancing the ledger involves subtracting the total ... Read Full Answer >>
  6. Why do businesses calculate accrued expenses?

    Whenever a business recognizes an expense before it is actually paid, it can make an accrual entry in its general ledger. ... Read Full Answer >>

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