Cash book is a separate book of accounts in which all the cash transactions of the company are entered with respect to the corresponding date.
Cash book has two sides i.e., left-hand side and the right-hand side where all the receipts in cash are recorded on the left side whereas all the payments in cash are recorded on the right side. Cashbook helps in effective cash management as management can know the balances of cash and bank at any time and take the necessary decisions accordingly.
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