How cash account records only one aspect of transactions? Explain with an example..

Dear Student,

When a cash Account is maintained ; firstly we need to post a journal entry of the transaction & then the transaction is posted into the ledger A/c;
; whereas when a Cash book is maintained there is no requirement of passing Journal entries as Cash book covers both the aspects of recording as well as posting.

Say, for example Rs 1000 paid for purchases of Goods. If we maintain cash A/c then firstly pass a Journal Entry & then post amounts into Cash A/c & Purchases A/c; but if Cash Book is maintained no need of passing Journal Entry just enter into credit side of Cash Book & Debit side of Purchases A/c.

Regards,




 

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