MAINTENANCE OF CASH SUBSIDIARY BOOKS AND LEDGER
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What is a subsidiary book in accounting?
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.
What is the format of a simple single-column cash book?
It has only one column each for debit and credit sides.
What is the purpose of a cash book in banking?
A cash book records all cash receipts and payments chronologically and serves the dual purpose of a journal and a ledger for cash transactions.
What does the debit side of the cash book record?
All cash receipts and inflows into the business.
How many types of cash books are commonly used in banking?
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.
What does the credit side of the cash book record?
All cash payments and outflows from the business.
What is a petty cash book?
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.
What is a triple-column cash book?
A cash book with cash, bank, and discount columns on each side.
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