Question
Which of the following is not a type of cash book?
Solution
Cash book is a book in which receipts and payments of money are recorded. Followings are the types of cash book: Simple Cash Book: This is the simplest form of Cash Book and is used in businesses where payments are made and received mostly in cash and where usually no cash discount is received or given. Two-Column Cash Book: This type of cashbook has two columns, viz., cash column and discount column. Three-Column Cash Book: The Cash Book with bank column in addition to the cash and discount columns. Petty Cash Book: Petty cash book is a kind of cash book which records large number of small payments such as conveyance, cartage, postage, telegrams and other expenses under the imprest system. Â
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