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An instrument to be a promissory note must fulfill the following essentials:

The statement which is prepared for verifying and reconciling the bank balances, shown by the cash book and the pass book on a certain date…

A cheque is ordinarily paid by the drawee bank if it is in perfect order. But sometimes a cheque is not paid.

Endorsements are of various kinds, the most important being as follow:

Endorsement is the act of signing a cheque for the purpose of transferring it to somebody else.

Purchase Book is also known as ‘Invoice Journal’ or ‘Bought Journal’ or Purchases Journal, is used for recording credit purchases of goods meant for resale.

The features of cash book are as follows:

Cash book consists of cash and bank accounts taken out of ledger and maintained separately; thus it is a substitute of ledger for cash and bank accounts.

The difference between Journal and Ledger are as follows…

Maintaining of ledger is a must in every accounting system. It is necessary as will be clear from its advantages.

Ledger is the principal book. It is the most important book in accounting system. It contains all the accounts (assets, liabilities, capital, revenue and expenses) to which the transactions…

Journal is known as book of original/prime record. Maintaining journal gives the following advantages to the entity concerned:

The following are the characteristics of journal: