Distinction between a Cash Book and a Cash Account - QS Study
QS Study

Distinction between a Cash Book and Cash Account:

In fact, Cash Book is an alternate for a Cash Account. A cash book is also known as the book of original entry. A cash account is a ledger account used for recording day to day cash transactions of business.

Yet there are some dissimilarities between the two, which are given below:

Cash Book

  • It is a detach book in which cash transactions are directly recorded.
  • It serves the purpose of both journal and ledger and hence cash transactions need not be primarily recorded in Journal.
  • Narration is required.
  • Cash book records ail entries related to cash directly as it is also a book of original entry.
  • A column for Ledger Folio is provided. Cash book contains columns for ‘L.F.’ in which page numbers of ledgers are recorded.

Cash Account

  • It is an account in a Ledger in which posting is made from 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 journal.
  • Narration is not required
  • Entries in the cash account are recorded from the journal, the book of original entry.
  • A column for Journal Folio is provided. Cash account contains columns for ‘J.F.’ in which page numbers of journal are recorded.