cash book and bank book are maintained by the accountant of
a n organisation. cash book is a book in which all cash
transactions are entered accordingly as they occur. and
bank book is an ledger a/c of particular bank of the
organisation.cash & bank balances occurs in the current
assets in the balance sheets of the organisation. the
transactions that shows effecct in these both a/c's are
called as contra enteries. before preparing the final
accounts bank reconcilation statement is prepared for
tallying the balances of these accounts.
Ex 1 : For each and every company in finance department you
can see a payments and collections cabin.Payments through
cheque and collections through cheques is related to bank
books and when the receivable and payables is directed
though cash then they are diverted to cash book.
Bank Book dealings with bank Transactions i.e.,Cheque
Payment, Deposit,Withdraw, Dishonour etc
Cash Book Dealings with cash like Cash Deposit,Payment.
Both are maintained with double columned book called "DAY
When oustanding expense is give in the TB and corresponding
expense is not then how will we the same?
Eg.: Outstaning salary 100 given in the TB and salary for
the month is not there to add oustanding with the same. In
this situation how will we treat the same. Only in profit &
loss account or in balance sheet or both or?