JAIIB · AFM

MAINTENANCE OF CASH SUBSIDIARY BOOKS AND LEDGER

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Accounting and Financial Management for Bankers — JAIIB.

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One-liners from this chapter

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Q

What is a subsidiary book in accounting?

A

A subsidiary book is a special purpose book of original entry used to record a particular class of similar transactions, reducing the burden on the main journal.

Q

What is the format of a simple single-column cash book?

A

It has only one column each for debit and credit sides.

Q

What is the purpose of a cash book in banking?

A

A cash book records all cash receipts and payments chronologically and serves the dual purpose of a journal and a ledger for cash transactions.

Q

What does the debit side of the cash book record?

A

All cash receipts and inflows into the business.

Q

How many types of cash books are commonly used in banking?

A

Three types are commonly used: single-column cash book, double-column (with discount column) cash book, and triple-column (with bank and discount columns) cash book.

Q

What does the credit side of the cash book record?

A

All cash payments and outflows from the business.

Q

What is a petty cash book?

A

A petty cash book records small, incidental cash payments such as postage, stationery, and conveyance, maintained separately to relieve the main cashier of minor transactions.

Q

What is a triple-column cash book?

A

A cash book with cash, bank, and discount columns on each side.

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