Question :

A ________ serves the purpose of both journal and ledger accounts


A) Journal proper
B) Purchase day book
C) Cash book
D) Any of the above

Answer : C

Description :


A cash book is a separate ledger in which cash transactions are recorded, whereas a cash account is an account within a general ledger. A cash book serves the purpose of both the journal and ledger, whereas a cash account is structured like a ledger. Details or narration about the source or use of funds are required in a cash book but not in a cash account.


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