Q103
A ________ serves the purpose of both journal and ledger accounts
A.
Journal proper
B.
Purchase day book
C.
Cash book
AnswerD.
Any of the above
Answer: Option C
Solution
Answer: Option C
Solution:
A cash book is a separate ledger in which cash transactions are recorded, whereas a cash account is an account within a general ledger. A cash book serves the purpose of both the journal and ledger, whereas a cash account is structured like a ledger. Details or narration about the source or use of funds are required in a cash book but not in a cash account.