InterviewSolution
Saved Bookmarks
InterviewSolution
| 1. |
definition of cash book and pass book |
| Answer» <p>Definition of Cash book</p><p>Cash book refers to a business journal in which all the cash transactions of the business are recorded in a sequential manner. The record is helpful in the preparation of the ledger. It is a subsidiary book. However, its cash column and bank column acts like cash account and bank account in which the direct posting to trial balance is possible, so it is a principal book also.</p><p>Cash book keeps a record of cash receipts like sales, receivables, etc. , disbursements, like purchases, payables, drawings, etc., deposits in bank and withdrawals, etc. Cash book is classified below:</p><p>Simple cash book: Cash book with cash column only.</p><p>Double column cash book: Cash book with cash and bank column.</p><p>Triple column cash book: Cash book with cash, bank and discount columns.</p><p>Petty cash book: For recording small value transactions, but it i a subsidiary book only.</p><p>Definition of Passbook</p><p>Bank passbook is a book that records the bank transactions in a savings account. It is the exact copy of the customer’s account in the bank’s book. It records the deposits, withdrawals, interest credited, bank charges, etc. during a financial year.</p><p>The passbook is issued by the bank to its customers. The customer has to retain it and periodically update it to enter recent transactions. With the help of Passbook, a customer can keep an eye on the entries made in his account by the bank. As and when the entries are updated in the passbook the customer can check them and inform the bank, if he finds any error regarding the entries made</p> <p>tqqqqqq☺️</p> | |