The features of cash book are as follows:
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- Only cash/bank transactions are recorded in cash book.
- It performs the role of both journal and the ledger.
- Receipt are recorded on the debit side and payments on the credit side.
- It records only one aspect of the transaction i.e. cash and bank; double entry is completed by means of posting in the ledger to the respective account.
- Transactions are recorded in chronological order.
- Cash column must have debit balance whereas bank column may have debit or credit balance depending upon whether bank balance is positive or overdraft.