Explain the meaning of cash book, bank statement and petty cash book.
Cash book: A cash book is a financial journal that contains all cash inflows and outflows of a business or organization. It records all transactions related to cash, such as sales, expenses, and payments, enabling businesses to track their financial activities accurately and efficiently.
Bank statement: A bank statement is a document provided by a bank that summarizes all transactions made on a bank account over a specific period, typically a month. It shows details of deposits, withdrawals, transfers, and any fees charged by the bank. Bank statements are essential for reconciling accounts, monitoring spending, and verifying transactions.
Petty cash book: A petty cash book is a manual record used to track small cash transactions within a business. It is typically used for minor expenses, such as office supplies, postage, or employee reimbursements. The petty cash book helps businesses maintain control over small cash transactions and provides a clear record of expenses for accounting and reporting purposes.