All 26 Cash Book & Petty Cash questions
More in Cash Book & Petty Cash
What is the cash book? What is the difference between a single, two, and three-column cash book? What is petty cash and the petty cash book? What is a petty cash voucher? How do you balance the cash book? What is the difference between the cash book and the bank statement? What does a debit balance and a credit balance mean in the cash book? What is the difference between cash and bank in bookkeeping? What is a two-column versus three-column difference in one line? Why must cash receipts be banked promptly?
Advertisement
Back to results for “Bank Reconciliation”
Bookkeeping › Cash Book & Petty Cash

What is the difference between cash and bank columns in the cash book?

Beginner

Answer

The cash column records physical cash (notes and coins) receipts and payments; the bank column records money moving through the bank account (cheques, transfers, card payments). Keeping them separate lets the business track till cash distinctly from the bank balance and reconcile each.
Real-world example A cash sale increases the cash column, while a customer's bank transfer increases the bank column.

Common follow-ups: Which column records a cheque received? | Why separate cash from bank?

Bank Reconciliation Books of Prime Entry Cash Book & Petty Cash
All 26 Cash Book & Petty Cash questions