Why the cash account and the bank account are not posted in the ledger?
Dear Student,
We all know that a Cash Book serves dual purpose i.e. Subsidiary Book as well as Principal Book. If Cash Book is prepared then all the cash transactions are directly recorded in the Cash Book and there is no need to record these transactions in the Journal. On the basis of Cash Book, Ledger Accounts are prepared and therefore, it is called as a Subsidiary Book.
Now, since the cash transactions are already recorded in the Cash Book, so there is no need to post them again in the Cash Account. Cash Book in itself represents the Cash and Bank Account, that’s why, it is called as the Principal Book. Thus, we can say that there is no need to open a Cash Account when Cash Book is maintained.
Regards
We all know that a Cash Book serves dual purpose i.e. Subsidiary Book as well as Principal Book. If Cash Book is prepared then all the cash transactions are directly recorded in the Cash Book and there is no need to record these transactions in the Journal. On the basis of Cash Book, Ledger Accounts are prepared and therefore, it is called as a Subsidiary Book.
Now, since the cash transactions are already recorded in the Cash Book, so there is no need to post them again in the Cash Account. Cash Book in itself represents the Cash and Bank Account, that’s why, it is called as the Principal Book. Thus, we can say that there is no need to open a Cash Account when Cash Book is maintained.
Regards