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In order to list down the procedure of posting ledger from cash book, it is vital to understand what is Cash Book?
What is Cash Book?
A cash book is an original record of all the cash payments and cash receipts which have been debited from credited from the company’s account in cash form. It is vital to keep such a record in order for long run as a proof of all the cash transaction which are made in favor (Credit) or against (Debit) the company.
Ledger posting from cash book
The posting of ledger accounts from cash book is maintained under two sections:
- Ledger posting from debit side:
It consists of the cash receipts prepared under the listing of cash debited from the company.
- Ledger posting from the credit side:
The transactions in the cash book prepared under the credit side which means the cash value which has been received by the company.
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