cash account
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In business practice, cash account refers to a
business-to-business Business-to-business (B2B or, in some countries, BtoB) is a situation where one business makes a commercial transaction with another. This typically occurs when: * A business is sourcing materials for their production process for output (e.g., ...
or business-to-consumer account which is conducted on an immediate payment basis i.e. no credit is offered. In
accounting Accounting or Accountancy is the measurement, processing, and communication of financial and non financial information about economic entity, economic entities such as businesses and corporations. Accounting, which has been called the "languag ...
practice, "cash account" or "cash book" refers to a daybook (Main entry book) used to record all transactions related to cash, especially cash receipts and payments. Cash account is considered as a special daybook because of its dual impact in
Accounting Accounting or Accountancy is the measurement, processing, and communication of financial and non financial information about economic entity, economic entities such as businesses and corporations. Accounting, which has been called the "languag ...
. Cash account acts as a main entry book as well as a ledger in Accounting. The dual impact of Cash book occurs due to the presence of two sides (entities):- Debit and Credit. Cash account is the combination of
Cash receipts journalA Cash receipts journal is a specialized journals, specialized accounting journal and it is referred to as the main entry book used in an accounting system to keep track of the sales of items when cash is received, by crediting sales and debiting cas ...
and cash payment journal and hence called as "Cash receipts and payment journal".
Receipt A receipt (also known as a packing list, packing slip, packaging slip, (delivery) docket, shipping list, delivery list, bill of parcel, Manifest (transportation), manifest or customer receipt) is a document acknowledging that a person has rece ...

Receipt
and payment voucher are the
source document A source document is a document in which data collected for a clinical trial is first recorded. This data is usually later entered in the case report formA case report form (or CRF) is a paper or electronic questionnaire specifically used in clinic ...
s of Cash book. Receipt is an evidence to the cash receipts and payment voucher is an evidence to the cash payments. Simply cash account is considered as an account you have with a
brokerage firm A broker is a person or firm who arranges transactions between a buyer and a seller for a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal. Neither role should be conf ...
, in which you deposit
cash In economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods ...
to buy
stock In finance, stock (also capital stock) consists of all of the shares In financial markets A financial market is a market in which people trade financial securities and derivatives at low transaction costs. Some of the securities in ...

stock
s, bonds and other
securities A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any form ...


References

Share trading Accounting journals and ledgers Payment terms {{Accounting-stub