Quick Answer: What Are The Different Kinds Of Cash Book?

What is the difference between a petty cash book and a simple cash book?

The fundamental difference between the Main Cash Book and the Petty Cash Book is that only petty expenses are recorded in the Petty Cash Book.

Thus, the book in which small payments, which are not convenient to record in the Main Cash Book, (like postage, traveling expenses, purchase of stationery etc.).

What is petty cash book?

The petty cash book is a recordation of petty cash expenditures, sorted by date. In most cases, the petty cash book is an actual ledger book, rather than a computer record. … This format is an excellent way to monitor the current amount of petty cash remaining on hand.

What are the 7 characteristics of money?

The characteristics of money are durability, portability, divisibility, uniformity, limited supply, and acceptability.

What are the 5 types of accounts?

There are five main types of accounts in accounting, namely assets, liabilities, equity, revenue and expenses. Their role is to define how your company’s money is spent or received. Each category can be further broken down into several categories.

What is the 3 golden rules of accounts?

According to the golden rules of accounting, there are three kinds of accounts: Personal, Real, and Nominal.

What is the main book of accounts?

It is the most important book of. preparation of the financial statements.

How do you classify accounts?

Under modern/American approach, the accounts are classified into the following five groups:Asset accounts: Examples are land account, machinery account, accounts receivable account, prepaid rent account, cash account etc.Liability accounts: … Revenue accounts: … Expense accounts: … Capital/owner’s equity accounts:Feb 23, 2016

What is money in simple words?

Money, also sometimes called Currency, can be defined as anything that people use to buy goods and services. Money is what many people receive for selling their own things or services. … Most countries have their own kind of money, such as the United States dollar or the British pound.

What are the advantages of petty cash book?

Advantages of Petty cash book:Simple method: Recording of transactions in a petty cash book is easy. … Time saving: Recording in petty cash book dsaves time and efforts of teh chief cashier.Efficient control: At teh end of a period, Petty cash book is audited by the main cashier, so frauds and errors are less probable.More items…

What is the difference between cash book and journal?

If you follow a single-entry bookkeeping system, you will use a cash book, which records transactions just like a checking account register but also assigns them to the appropriate accounts. … Journals are the next stop for your transactions.

What is cash book explain the different types of cash book draw the format of different types of cash books with at least five items in each?

Debit side of cash book shows the all receipt and credit side shows all the payment made. Cash Book is an original entry book So we need to record full transaction but in single column cash book, it is not possible to record properly of those cash transactions which are including discount account also.

What is cash book with example?

A cash book is a financial journal that contains all cash receipts and disbursements, including bank deposits and withdrawals. Entries in the cash book are then posted into the general ledger.

Which transactions are not recorded in cash book?

A cash book records the transactions related to cash receipts and cash payments. Thus, it records only those transactions that involve cash inflows or outflows. Credit transactions are not recorded in the cash book as it does not involve any cash inflows or outflows.

What is the format of petty cash book?

Like a general cash book, a petty cash book has a debit and a credit side. All receipts are recorded on the debit side and all payments are recorded on the credit side of petty cash book by the petty cashier.

What is a general ledger?

A general ledger, or GL, is a means for keeping record of a company’s total financial accounts. Accounts typically recorded in a general ledger include: assets, liabilities, equity, expenses, and income or revenue.

What is another name for petty cash?

What is another word for petty cash?cashmoneypeanutsmiteshoestringsmall changespending moneypocket moneypin moneycapital111 more rows

How many types of cash are there?

There are three sources of cash for your business: Operating Cash – cash generated by the operation of your business showing how well management converts profits into cash. Financing Cash – cash input from shareholders or borrowed/repaid to lenders. Investing Cash – cash outgo or income from buying or selling assets.

What is a cash book?

A cash book is a financial newspaper which includes all cash receipts and disbursements, including bank deposits and withdrawals. After that, entries in the cash book are added to the general ledger.

What are the 3 types of money?

Three Types of MoneyPhysical money. Physical money, meaning cash and coins, is created by the US Treasury. … Central bank reserves. Central bank reserves are a type of electronic money, created by the Federal Reserve and used by banks to make payments between themselves. … Commercial bank money.

How do you prepare a cash book?

Writing a Three column Cash Book:Opening Balance: Put the opening balance (if any) on cash in hand and cash at bank on the debit side in the cash book and bank columns. … Cheque/Check or Cash Received: … Payment By Cheque/Check or Cash: … Contra Entries: … Bank Charges and Bank Interest Allowed: … Solution:Noorani Stores.

What form can money take?

Three Types of MoneyCash: Physical money, or cash, is created under the authority of the Bank of England, with coins manufactured by the Royal mint, and notes printed by specialist printer De La Rue. … Central bank reserves. … Commercial bank money.