Difference Between Cash book and Passbook

Cash book keeps a record of cash transactions. Passbook is issued by the bank to the account holder that records the deposits and withdrawals. Cash book is prepared by the firms whereas Passbook is written by banks and retained by the customer.

1. What are the reasons for difference between cash book and passbook?
2. Who maintain cash book and passbook?
3. What is a cash book used for?
4. What is cash book?
5. What do you mean by passbook?
6. What is petty cash book?
7. Who prepare cash book?
8. What is debit in passbook?
9. What is BRS passbook?
10. What are the three types of cash book?
11. What are the different kinds of cash book?
12. How do I write a cash book?

What are the reasons for difference between cash book and passbook?

Reasons for Difference in Pass Book and Cash Book

• Cheques Recorded in Cash Book but not Yet Credited by Bank: Cheques received are entered in the Cash Book as soon as they are received. ...
• Cheques Issued but not Yet Presented for Payment: ...
• Bank Charges: ...
• Direct Collections by Bank: ...
• Payments by Bank as per Standing Instructions:

Who maintain cash book and passbook?

Explanation of Difference:

What is a cash book used for?

A cash book lets you see the daily balance of cash on hand or bank balance. A cash book is the primary source of information on any cash operations taking place in the company, thus it can be used to verify the data recorded in the general ledger.

What is cash book?

A cash book is a financial newspaper which includes all cash receipts and disbursements, including bank deposits and withdrawals. After that, entries in the cash book are added to the general ledger.

What do you mean by passbook?

A passbook or bankbook is a paper book used to record bank or building society transactions on a deposit account.

What is petty cash book?

The petty cash book is a recordation of petty cash expenditures, sorted by date. In most cases, the petty cash book is an actual ledger book, rather than a computer record. ... This format is an excellent way to monitor the current amount of petty cash remaining on hand.

Who prepare cash book?

Cash book is prepared by Accountant of business. A cash book is set up as a ledger in which all cash transactions are recorded according to date. It is a book of original entry and final entry.

What is debit in passbook?

The debit balance as per the cash book means the balance of deposits held at the bank. Such a balance will be a credit balance as per the passbook. Such a balance exists when the deposits made by the firm are more than its withdrawals. ... On the other hand, the credit balance as per the cash book indicates bank overdraft.

What is BRS passbook?

A PassBook is a book which the bank issues to the account holder for the purpose of recording such transactions. However, in the case of Current Account, the bank issues a Bank Statement and not a Pass Book.

What are the three types of cash book?

There are three common versions of the cash book: single column, double column, and triple column. The single-column cash book shows only receipts and payments of cash. The double-column cash book shows cash receipts and payments as well as details about bank transactions.

What are the different kinds of cash book?

Types of Cash Book

• Single column cash book.
• Double column cash book.
• Triple column cash book.
• Petty cash book.

How do I write a cash book?

Writing a Three column Cash Book:

1. Opening Balance: Put the opening balance (if any) on cash in hand and cash at bank on the debit side in the cash book and bank columns. ...
2. Cheque/Check or Cash Received: ...
3. Payment By Cheque/Check or Cash: ...
4. Contra Entries: ...
5. Bank Charges and Bank Interest Allowed: ...
6. Solution:
7. Noorani Stores.