 Hello, learners. I welcome you to this session. In this session, we will discuss about cash book. Cash book is included in Unit 6 of financial accounting of Becom for semester. In this session, we will mainly discuss the concept of cash book, then type of transactions to be recorded in cash book, then the differences between cash book and pass book, and the importance of cash book. We will divide the total idea of cash book into two sessions. In this particular session, we will discuss only the theoretical aspect, and in the second session, we will discuss the practical aspects of cash book. All of you know about the importance of cash. All of you know about the importance of recording cash in business. So cash is required in every business and this is very important component of working capital. Cash is helpful in meeting the expenses, mainly the revenue type of expenses. Cash can also be used to invest the excess cash in business. So our main concern is here to know about how to record the transactions. So first of all, what is cash book? Cash book is a subsidiary book. You all know about other subsidiary books like purchase book, sales book, etc. In purchase book, we record credit purchase transactions. In sales book, we record credit sales transactions. So cash book is one of the subsidiary book. But what we record in cash book? So in cash book, we generally records the cash or check payments. Check is considered as equivalent to cash. So cash and check receipts, cash purchase, cash sales, cash deposit into bank, then cash withdrawals from bank, etc. The important point to be noticed here is that no credit transactions are recorded in cash book. So cash book, the name itself suggests that only the cash transactions will be recorded and no credit transactions will be recorded in cash book. So we know about another book, passbook. Passbook is generally issued by the bank. Bank issues the passbook to all the account holders and all the deposits and withdrawals that we made in bank or withdraw cash from bank are recorded in a particular book. So that record is maintained by the bank and it is given to the customer by the bank. So there is difference between cash book and passbook. So we can maintain our own cash book. But passbook is maintained by the bank and this is given to the customers by the bank. So all the transactions that has been done with the bank in the form of deposits of cash and withdrawal of cash from bank will be recorded and the passbook will show the balance on a particular date. So this is the record of customers transactions with the bank and the bank will give a copy of these transactions in the form of passbook. The customer cannot make any entry in passbook. The customer will make his own entry in his own cash book and occasionally he can tell you the records of cash book and the records of passbook. Now importance of cash book. So cash is very important as we have already mentioned in the beginning of the session. So cash helps in meeting all the expenses. So it is important to know the exact position of cash. So by maintaining cash book we can ascertain the true cash position of the business. So cash book will help you in maintaining the exact cash position in the business at a particular point of time. You may have a notice during your shopping in day to day life that generally the shopkeepers whenever he or she get the cash maintains some records. So he is maintaining the records of receiving the cash. So the physical cash and the records made in the cash book must tell you. So this will help in ascertaining the true cash position on a particular point of time. Cash book also helps in proper cash management. So the sources from where you receiving the cash and for what you are making the payments all will be recorded in the cash book. So in cash book there will be two sides debit and credit. One is receiving aspect and other is paying aspect. We will all discuss this in detail in the practical session. So all the receipts and payments will be recorded in cash book and you will be able to know the exact amount of cash and for what you are paying cash and from where you are receiving the cash. When we maintain cash book it also prevents misappropriation of cash. So some employees may handle the cash in your business. So to restrict any misappropriation of cash, recording of transaction in cash book is very important. It will prevent any misappropriation of cash in the business and will provide the exact data about the balance of cash as well as the bank balance. We can maintain the bank balance also in the cash book. Cash book also serves as a documentary evidence for cash balance. As we are recording the cash receipts and cash payments whenever the transaction takes place it also act as a documentary evidence for the cash balance. So in this session we have mainly focused what is cash book. Cash book we know it is a subsidiary book. Then we came to know about the transactions. Mainly the cash transactions are recorded in cash book. No carry transactions are recorded in cash book. Then pass book is different from the cash book and pass book is maintained by the bank and it is given to the account holder by the bank and cash book helps in efficient cash management. So thank you learners. In the second session we will discuss certain practical aspect of cash book. Thank you.