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difference between cash book and bank book?
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Answer Posted / waqar jahandad
ABCDEF has withdrawn $100 from UVWXYZ bank, this
transaction will be recorded in both books. For the bank
the amount been paid goes to credit side and for the
accoutn holder it comes through debit side. Reconciliation
is to match both those records and adjust the missing
transactions.
Cash Book is the record for the account holder (the bank
customer) and Pass Book is record for the Bank (i.e, Banker)
Cash book and Pass book are like the newton's third law of
motion,"Every action has equal reaction but it is in the
opposite direction"
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