Question

Why is a cash book considered both a journal and a ledger?

Answer 1

A cash book is considered both a journal and a ledger because it records all cash transactions as a book of original entry (like a journal) and simultaneously serves as a final record by showing cash balances and details (like a ledger). It records both receipts and payments of cash in a ledger format, eliminating the need to post cash transactions separately to the ledger.

Thus, it performs the dual function of journal and ledger.