MAINTENANCE OF CASH _ SUBSIDIARY BOOKS & LEDGER
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for accounting in depth — Bank Promotions.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What is a subsidiary book in banking accounting?
A subsidiary book is a special journal used to record a specific class of transactions in detail before posting to the ledger, reducing the burden on the main journal.
What is the primary function of a Cash Book in bank branch accounting?
It records all cash receipts and payments chronologically.
Which subsidiary book records all credit purchases made by a bank?
The Purchases Book (also called the Purchases Journal or Invoice Book) records all credit purchases; cash purchases are recorded in the Cash Book instead.
What is a Purchase Book used for in an accounting system?
It records all credit purchases of goods by the entity.
What is the purpose of a Sales Book in a commercial entity's accounts?
The Sales Book records all credit sales transactions; it allows systematic tracking of receivables and forms the basis for posting to individual debtors' ledger accounts.
What does a Double Column Cash Book record separately?
It records cash and bank transactions in separate columns.
What does the Cash Book serve as in the accounting system?
The Cash Book serves the dual purpose of a journal (book of original entry) and a ledger (Cash Account), recording all cash and bank receipts and payments.
What is the General Ledger in a bank's accounting structure?
It is the master book recording all classified financial transactions.
Video classes for this chapter
More chapters in Accounting in Depth Videos
Master the full ACCOUNTINGIN syllabus
Every chapter of accounting in depth — videos, tests, notes and one-liner decks in one place.