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Cash book is a form of :
- a)Trial Balance
- b)Ledger
- c)Journal
- d)All of the above
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Cash book is a form of :a)Trial Balanceb)Ledgerc)Journald)All of the a...
Journal in which all cash receipts and payments (including bank deposits and withdrawals) are recorded first, in chronological order, for posting to general ledger.
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Cash book is a form of :a)Trial Balanceb)Ledgerc)Journald)All of the a...
Explanation:
Conclusion: Therefore, as cash book is a subsidiary book of accounts, it cannot be considered as a trial balance but it is a part of ledger accounts. Hence, the correct option is B) Ledger.
- Cash Book: A cash book is a book in which all transactions related to cash receipts and cash payments are recorded. It is a subsidiary book of accounts, which records all the transactions related to cash and bank.
- Ledger: A ledger is a book or collection of accounts in which transactions are recorded. It is the principal book of accounts where all transactions are posted from the journal or subsidiary books.
- Journal: A journal is a book in which all transactions are recorded in a chronological order before they are posted to the ledger accounts.
Conclusion: Therefore, as cash book is a subsidiary book of accounts, it cannot be considered as a trial balance but it is a part of ledger accounts. Hence, the correct option is B) Ledger.
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