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Recording of Transactions - 2 — Account STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceAccountRecording of Transactions - 24 Marks
Question
Explain the statement 'Cash book is a Journalised Ledger'.
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Answer

Cash Book is a Journalised Ledger:
Sometimes a question arises whether Cash book is a journal or ledger? It is a journal since the transactions are recorded in it for the first time from the source documents and from there these are posted to the respective accounts in the ledger. The Cash book is also a ledger in the sense that it serves the purpose of a Cash account also. When a Cash book is prepared, no separate Cash account is opened in the ledger. As such, the Cash book is a journal as well as a ledger and hence it may be called “journalised ledger”.

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