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However, some mid-to-large-sized businesses prefer maintaining two separate cash book records: a cash receipts journal and a cash disbursement journal. A cash receipts journal records all the money received by the business, such as cash sales and customer payments.

Cash book records all cash transactions of receipts and payments. Different type of cash book is used depending on the requirement of the business i.e two column cash book, three column cash book. Cash book records all the transaction which includes revenue and capital both.

The cash book is maintained in the form of a ledger account, where receipts are put on the debit side and payments on the credit side. This book serves a double purpose. It acts as a journal or book of prime entry because all cash transactions are recorded in it as and when they take place.

In a single column cash book, receipts will be recorded on the left, and payments or cash disbursement is recorded on the right. Receipts are referred to as 'debit entry' and payments as 'credit entry.

A receipts and payments account is a summary of actual cash receipts and payments extracted from the cash book over a certain period. All cash received and paid during the period, whether capital or revenue, is included in this account.

The debit side of the cashbook denotes Receipts and the Credit side denotes Payments.

Cashbook is prepared on a double-entry system of accounting, so, any mistake in the book can be easily detected at the time of verification of cash. The debit side of the cashbook denotes Receipts and the Credit side denotes Payments.

A cash book records all cash receipts in the debit side and cash payments in the credit side. It has two parts - cash receipts and cash payments. A cash book can have single, double or triple columns depending on the type of transactions.