Cash Book

A cash book is the bible of the accounting department. These ledgers record all cash receipts from customers and payments to vendors. Think about it like the cigar box at Grampa's Levi's and Smoke shop. A the end of the day, whatever cash was in that cigar box was the day's profits. These days a "cash book" isn't really a book. It's much more likely to be a computer file.

Bank deposits and withdrawals are also entered into this financial journal. The cash book serves as part of a general ledger where all debits and credits are recorded for the company. (Cash receipts go under debits while cash payments are recorded under credits.) The ledger is then used to produce the income statement and balance sheet, the basic documents that investors and auditors closely watch.

If you really wanted to be cool though, you'd staple 300 $20s together all along the far-left seam and have a real cash book. Easy reading. We'll even offer to Shmoop it.