So what are cash books used for? In accounting, they are used to record both the cash transactions received by the business and the cash paid by the business. It has two sides; The debit side and the credit side. Each side of the cash book in accounting has columns for;

-Date of

-Special; where you save the products.

-Bank; This is where you record check payments and receipt of checks.

-Cash; This is the column where you should record the cash received and the cash paid.

Debit side; It is used to record the cash received after which it is posted to the cash column of the cash book. For example, if you made cash sales of goods worth $ 80,000, this would be recorded on the debit side of the cash book. The debit side is also used to record checks received by the business, that is, if a customer pays for goods with a check for $ 120,000, this is recorded on the debit side of the bank column.

Credit side; The credit side is used to record cash and checks paid by the business. For example, if your fuel costs around $ 100 and is spent in one day, then it will be credited or written on the credit side of the cash book, in the Bank column on the credit side of the cash book. So what is the importance of a cash book in accounting anyway? You can ask. Well …

1. Helps the business capture all payments and receipts for a particular month or duration.

2. Used to reconcile bank statements.

3. It can be used as a reference in accounting during the audit, therefore it provides evidence that it is very useful to guide the auditors as they review their accounting books.