Accounting magazines and cash books

The accounting procedure for registering information involves two steps, namely journalizing and bookkeeping. It follows that every business must keep a journal (books with original or primary record) and a ledger (ledger). Thus, the accounting system initially foresees that all the transactions must first be recorded in the book with the original record, ie. journal, and then every transaction recorded in the journal must be placed in the ledger, ie. hovedbok. Subsequently, it was experienced that the work of recording each transaction with narrative in the journal and then submitting each entry on two different accounts in the ledger was enormous. The procedure was more time consuming and resulted in higher setup costs.

It is natural that most of the transactions in any business involve receipts and cash payments; purchase of goods. sale of goods etc. It proved to be practical and economical to keep separate books for recording each class of transactions. Each separate book intended to record transactions in a particular class is the book of original or primary record. It is also known as a sub-book or subsidiary book. The system under which similar transactions are entered in the relevant ‘subsidiary book and on the basis of which the general ledger is written is called the’ practical accounting system ‘. This system reduces the workforce and timing of the transactions as impersonal accounts, ie. sales account, purchase account, etc., receives the posting of totals and not of individual transactions. However, this system also complies with the basic rules of the dual input system.

Generally, the following subsidiary books are used in the industry:

(1) Cash register: records receipts and payments of cash including transactions involving bank;

(2) Purchase Book: records credit purchases of goods intended for sale or for conversion to finished goods;

(3) Returns outbound book: records the return of the item to the suppliers for several reasons;

(4) Sales book: records credit sales of the goods processed by the company;

(5) Returns inbound book: records customer returns of goods to the company; (vi) Image Distribution Book: records receipts on bills of exchange, certificates of issue and hundreds from various parties;

(6) Accounting decision: records the issuance of accounting rates, promissory notes and hundreds to the various parties:

Benefits of sub leaves

(1) It results in time savings by (a) enabling the recording procedure to be performed simultaneously in different subsidiaries and (b) by posting the periodic totals in the impersonal accounts.

(2) It provides information on each class of transaction.

(3) At the time of preparation of the trial balance, checking is easier because books are many different people can do the job.


In any business, the largest number of transactions of one kind may have to do with cash and banks. This is so because each transaction should ultimately result in a cash transaction. If each cash transaction is to be recorded in journal, it will involve a huge amount of labor by debiting or crediting cash or bank accounts in the ledger of each transaction. Therefore, it is convenient to have a separate book, the money book, to record such transactions. Maintaining the cash book removes the need to have cash and bank accounts in the ledger. This book allows us to know the balance of cash in hand and in the bank at any time.

The cash book consists of cash and bank accounts taken out of the general ledger and kept separately; it is thus a substitute for the ledger for cash and bank accounts. It is also an original entry book because cash and bank transactions are not recorded in any other subsidiary.

Types of Moneybooks

The type of money book to be used by any business depends on its nature and requirements. It can be one of the following:

(1) Cash book with one column (cash column).

(2) Double column cash book (cash and discount columns).

(3) Triple column cash book (cash, discount and bank columns).

(4) Bank cash register (bank and discount columns).

Generally, each company will use any of the above types of cash books along with the “small cashbook” which is maintained on the memorandum.

The difference between cash AC and cash book

In fact, the cash book is a perfect cash account replacement. In both records, cash transactions date is recorded wisely in order. Cash balance at any date can be ascertained by balancing both on any desired day. However, there are some differences between the two as given below:

Cash account

1. Is an account in the general ledger.

2. Cash accounts are part of the general ledger. The cash account is opened in the general ledger, where the accounting is done from a book with original mail, ie. journal

3. In cash account accounting is not followed by narrative.

4. It records only one aspect of transactions involving cash and banks.


1. Is a separate accounting system that is part of the accounting system.

2. The cash book records records directly from transactions and these are not necessary for a book of primary mail.

3. In box book, records are also followed by narrative.

4. It records both the aspects of this transaction in cash and bank columns to complete double entry.