Cash book
A cash book records cash and bank receipts and payments. In a traditional bookkeeping system it also serves as the cash or bank ledger account. Separate columns may record cash, bank and discounts, depending on the design. The bank column is compared with the bank statement during reconciliation, and omitted transactions or errors are corrected before preparing the reconciliation.
Worked example
A $500 customer receipt by bank transfer is entered on the debit side of the bank column and credited to the customer account.
Common mistake
The bank statement is the bank’s record; it does not automatically replace the business’s own cash book.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | F1 | Direct | July 2027–August 2028 |
| ACCA | F2 | Supporting | July 2027–August 2028 |
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | K1 | Direct | July 2027–August 2028 |
| CIMA | BA3 | Direct | Official assessment-window verification pending |
| FIA | FFA | Direct | September 2026–June 2027 |