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2- What is the difference between cash book and journals?
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Answer / aqeel raza
Cash book is a form of journal mostly used to control receipts and payments of cash. It works as a ledger of cash and bank which balance at the end is shown in balance sheet. The cash book deals with only transactions occurred in cash or by bank and for small transactions, petty cash book is maintained.
When general journal is the form of mixtures of all transactions cash, credit, adjustments, discounts and goods returns and some special journals like cash receipt journal, cash payment journal, sales journal, sales return and allowances journal and purchase journal, purchases return and allowance journals support to general journal.
The cash book is the best replacement of cash receipt and cash payment journals.
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