Is cash book a journal or ledger explain?
Isabella Turner
Updated on January 01, 2026
A cash book is a separate ledger in which cash transactions are registered, while a cash account is a general ledger account. A cash book serves both journal and ledger purposes, while a cash account is organised like a ledger.
How do you make a ledger from a cash book?
Posting the from Petty Cash Book to Ledger:
- For posting of items of petty cash book, all heads of petty cash book are totaled periodically, say monthly.
- Then, total of individual heads of the petty cash book are posted to the debit side of respective ledger account by writing the words ‘To Petty Cash A/c’.
How the cash book is both a book of prime entry and a ledger account?
Cash book is a unique kind of subsidiary book. It plays a dual role. It acts as the book of original entry or prime entry and also as ledger. It is a subsidiary book because entries are first posted in the cash book and then, from there, it is posted in other ledger accounts.
Which is both a book of journal & ledger?
cash book
Hence, cash book serves both as journal and ledger.
Which journal is a cash book?
It is a journal as well as ledger . It is a journal since cash and bank transactions are first recorded in it and a ledger since it serves the purpose of a Cash Account alos. When a Cash Book is prepared , no separate Cash Account is opened in the ledger .
What does a ledger contain?
A ledger is a book containing accounts in which the classified and summarized information from the journals is posted as debits and credits. The ledger contains the information that is required to prepare financial statements. It includes accounts for assets, liabilities, owners’ equity, revenues and expenses.
What is PR in cash book?
Definition: A posting reference column, often abbreviated PR, is a column in the general journal that is used to indicate when entries have been posted to the ledger accounts.
What is a journal proper?
Journal proper or General Journal is a simple book of chronological records of business transactions. This book of original entry (simple journal) in which miscellaneous credit transactions which do not fit in any other books are recorded. It is also called a miscellaneous journal.
