Cash Book

Tax Glossary Definition

Cash Book

Cash Book – A cash book is an accounting record used to document all receipts and payments of cash and bank transactions in the order they occur. It functions as both a journal and a ledger, allowing a business to maintain continuous control over its cash position and liquidity. Example: When a company receives ₹50,000 from a customer and pays ₹20,000 to a supplier, both transactions are entered in the cash book to update the cash balance.

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