Enquiry about Cash Book cum journal

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Jinesh (Querist)
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31 May 2009 Dear all

I am going to audit a firm and it maintains Cash Book cum journal. I have heard these words first time. Would you please let me know what this is and how to audit it?

Rgds,
Jinesh Rajpurohit

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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31 May 2009
Manual Book keeping: There was a time when account books were maintained on single entry system. Under this system daily business transactions were recorded in a day book and clubbed together under different heads of accounts at the end of a period to derive the closing balances of assets and liabilities. Since the system was week on highlighting the errors this gave birth to double entry system of book keeping. Historically every transaction was recorded into the Journal. Journal was the first entry point for all transactions into the accounting system. After recording the transactions for the day into Journal Book next step was to post entries to the respective ledgers. Accordingly,as you know, the accounting method continues.

Now also some business people, in the manual system of accounting, records cash entries and journal entries in one book and call it as day book.

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