Cash Book
Definition
A book of original entry recording all cash and bank receipts and payments. It doubles as both a journal and a ledger account for cash, and its balance should reconcile to the bank statement.
Related Terms in Core Accounting
Day Book
A book of prime entry where transactions of a particular type — sales, purchases, returns — are first listed in date order before being posted to the ledger. It keeps the ledger uncluttered.
Trade Discount
A reduction off the list price given to a buyer, usually for volume or trade status, deducted before the invoice is raised. It is not recorded separately in the books because the invoice is already net of it.
Cash Discount
A reduction offered to a customer for paying within a set time. Unlike a trade discount, it is recorded in the books because it affects the amount actually received against the invoiced total.
Outstanding Expenses
Expenses that relate to the current period but remain unpaid at its end, recorded as a liability so the cost is matched to the right period. They are a form of accrued expense.
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