|
Cash Book |
|
Receipts
and Payments Account |
|
|
|
|
1 |
It is a book
of account within the
double entry system. |
1 |
It is an
account outside the
double entry system. |
2 |
Each
transaction is recorded here separately in
chronological (according to date) order. |
2 |
Each
transaction is not recorded separately - all
the transactions are recorded at a time at
the end of accounting year in a classified
from. |
3 |
Each entry is
followed by narration |
3 |
No narration
is written here. |
4 |
Ledger
reference is recorded here |
4 |
No ledger
reference is recorded |
5 |
Daily cash
balance can be ascertained from this book. |
5 |
Daily cash
balance cannot be ascertained. |
6 |
All concerns
(non-profit seeking and profit seeking)
organizations prepare it. |
6 |
Only
non-profit seeking organizations prepare
it. |
7 |
Whenever a
cash transaction takes place, it is recorded
in this book. In other words, it is a
current account. |
7 |
It is prepared
on the last day of the year. In other words,
it is a periodical account. |
8 |
It is a must. |
8 |
It is not
indispensable - it may not be prepared. |