Question
Distinguish between Cash Book and Cash A/c.
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Cash A/c
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Cash Book
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1.
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It is an account in tha Ledger.
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1.
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It is a separate book maintained for recording Cash transactions.
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2.
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Cash account is opened in tha ledger and posting is done in this account from journal.
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2.
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It is a book of original entry because all cash transactions are first of all recorded in Cash book and then posted from Cash book to various accounts in tha ledger.
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3.
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When transactions of Cash are recorded in journal, it is necessary to open a Cash A/c in ledger.
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3.
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When transaction of Cash are recorded in Cash book, there is no necessity to open a Cash A/c in tha ledger.
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4.
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It only records one aspect of a transaction i.e.,Cash.
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4.
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It fecords both tha aspects of a teansaction.
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2023 | ₹ | |
June 20 | Opening Balance of Cash | 1,180 |
| Progressive Bank | 19,040 |
| Goodwill Bank (Overdraft) | 6,460 |
20 | Received a cheque for₹ 1,800 from a debtor Mr. X and deposited in Goodwill Bank. The Bank credited the amount on 23rd June and debited 4 as its collection charges. |
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21 | Purchased goods for 18,210 and a cheque issued on Progressive Bank. |
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22 | Paid office expenses 410 and 80 for stationery in cash. |
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23 | Deposited a cheque for ₹21,090 being sale proceeds of goods in Progressive Bank. The Bank credited the amount on the same day and debited 21 as cheque discounting charges. |
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23 | A cheque for₹ 8,000 drawn by Mr. Jain himself on Progressive Bank was deposited in his account with Goodwill Bank. |
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25 | Cash drew from the account with Progressive Bank 600 for office use. |
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25 | A cheque for 1,100 received from Mr. A and earlier deposited in Goodwill Bank (on 14 4th June) was returned unpaid and Bank debited 10 towards its charges. Mr. Jain received the amount of returned cheque and Bank charges in cash from Mr. A. |
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28 | Deposited cash 1,500 in the account with Goodwill Bank. |
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29 | Purchased postal stamps for 200 and paid in cash. |
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Cash | 2,000 | Sundry Creditors | 40,000 |
Capital | 80,000 | Investment | 8,000 |
Purchases | 85,000 | Plant and Machinery | 15,000 |
Sales | 1,08,400 | Building | 20,000 |
Purchases Return | 6,000 | Furniture | 6,000 |
Sales Return | 4,000 | Electricity | 700 |
Transportation | 1,800 | Postage | 400 |
Discount Allowed | 500 | Drawings | 8,000 |
Printing | 5,000 | Salaries | 6,000 |
Sundry Debtors | 70,000 | Travelling Expenses | 2,000 |
Input CGST A/c | 2,500 | Output CGST A/c | 1,500 |
Input SGST A/c | 2,500 | Output SGST A/c | 1,500 |
Input IGST A/c | 4,000 | Output IGST A/c | 6,000 |