All 26 Cash Book & Petty Cash questions
More in Cash Book & Petty Cash
What is the difference between cash and bank columns in the cash book? 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 a two-column versus three-column difference in one line? Why must cash receipts be banked promptly? What is the imprest system for petty cash? How is the petty cash book reimbursed and posted? What is a contra entry in the cash book? How do discounts allowed and received appear in the three-column cash book?
Advertisement
Back to results for “Books of Prime Entry”
Bookkeeping › Cash Book & Petty Cash

What is the difference between cash and bank in bookkeeping?

Beginner

Answer

Cash refers to physical notes and coins held by the business (and till floats); bank refers to money held in the bank account, moved by cheques, transfers, and cards. They are recorded in separate columns of the cash book and are distinct assets that are each reconciled.
Real-world example Notes in the till are cash; the current account balance is bank—tracked in separate cash book columns.

Common follow-ups: How are they recorded differently? | Which is reconciled to a statement?

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