Cash Book – A subsidiary book and
principal book of accounts
All the cash
transactions are recorded first in the cash book. It is therefore a subsidiary
book. When cash book is maintained, there is no need for preparing cash account
and bank account in the ledger because in the cash book cash receipts and cash
payments are compared and the cash and bank balances at the end are arrived at.
Thus, it serves as a ledger account also. Hence, the cash book, unlike any
other subsidiary book, is both a subsidiary book and a principal book.