Cash journal or cash book
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Cash book is meant for recording all cash transactions. It is a very important journal of business on account of the following reasons:
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Number of transactions is quite large in every business.
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Chances of fraud being committed regarding cash are higher as compared to other assets.
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Strict control is, therefore required. Properly maintained cash book helps in attaining this objective.
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Cash is nerve centre of business. Timely payment to its creditors increases the reputation of the business.
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Similarly timely payments from its debtors improve the financial position of the business.
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Cash book can be any one of the following types:
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Cash receipts book
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Cash payments book
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Last modified: Saturday, 2 June 2012, 7:29 AM
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