QS Study

Difference between Cash Book and Pass Book

A cash book is an exceptional journal which is used to record all cash receipts and cash payments. Cash book is written by depositor and pass book is written by the bank. All transactions related to a bank are recorded in the bank column of the cash book and these transactions are also recorded in the pass book by the bank.

Cash Book

  • It is written by the depositor.
  • Money deposited is recorded on the debit side and money withdrawn on credit side.
  • A check deposited for collection is recorded on the date of deposit.
  • A check when issued to a creditor is recorded on the date of issue.
  • Its debit balance shows cash at bank and credit balance shows bank overdraft.

Pass Book

  • It is written by the bank but remains in the depositor’s possession.
  • Money deposited is entered on the credit side and withdrawn on the debit side.
  • It is recorded on the date when it is actually collected from the debtor’s bank.
  • It is recorded when it is paid by the bank to the creditor.
  • Its debit balance shows bank overdraft and credit balance shows cash at the bank.