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Which of the following is not a feature of Cash Book?
  • a)
    It records only cash transactions
  • b)
    It serves as both journal and ledger
  • c)
    It shows both cash and bank balances
  • d)
    It cannot record contra entries
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Which of the following is not a feature of Cash Book?a)It records only...
Cash Book is a special journal as well as a ledger. It records all cash transactions directly, showing cash and bank balances. Contra entries (like cash deposited into bank or withdrawn from bank) are also recorded in Double or Triple Column Cash Book, so option (d) is incorrect.
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