In book-keeping, the basic book of account, where all receipts and payments are recorded. Receipts are shown as debits, payments as credits. Each side normally has two columns, one dealing with transactions in cash, the other with bank transactions. The payment side may have many supplementary analysis columns so that an amount paid can be written in the column appropriate to the type of expenditure. The totals of the various analysis columns will be ultimately transferred to the relevant expense accounts in the nominal ledger.
The cash book is both a book of prime entry and a ledger account. Effectively, it is as if the cash account from the nominal ledger were kept in a separate book because of the ultiplicity of entries. Consequently all debits and credits in the cash book are part of the double-entry system of bookkeeping.
Reference: The Penguin Business Dictionary, 3rd edt.
Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >