Cash Book

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What is a '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.
 

BREAKING DOWN 'Cash Book'

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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