What is Cash Book?

Ans.- A cash book is a financial record of all cash receipts and disbursements in a business. It is used to track the inflow and outflow of cash, including sales, purchases, expenses, and payments. The cash book is typically divided into two columns, one for cash receipts and one for cash payments. Each entry in the cash book includes the date, amount, and description of the transaction. The cash book can be used to reconcile the business’s bank statement and to prepare financial statements such as the balance sheet and income statement. It is an important tool for managing and tracking the financial health of a business.