Difference Between Cash Book and Pass Book
When it comes to accounting, it’s essential to keep track of all the financial transactions. Cash book and Pass book are two crucial documents that are maintained by individuals or organizations to keep track of everything that comes in and goes out.
Cash Book
A cash book is a record of all the transactions related to cash receipts and cash disbursements in an organization or for personal use. It is a journal that records all the cash inflows and outflows, including petty cash expenses, daily receipts, cash sales, and payments made.
The cash book is updated regularly and is used to maintain a record of the available cash balance.
Pass Book
A passbook is a financial document that is issued by banks to their customers, which contains details about all the transactions related to a particular bank account. This document is updated by the bank, and it shows all the deposits, withdrawals, and other transactions that take place in the account.
The passbook enables the customers to keep a record of all their transactions on their own, and it also helps them to keep track of the available balance in their account.
Differences Between Cash Book and Pass Book
The main difference between the cash book and passbook is that the cash book is maintained by the organization or individual, while the passbook is maintained by the bank.
Another significant difference is the purpose and usage of these documents. The cash book is used to record all the cash transactions of an organization or individual, while the passbook is used to check the balance of the account and to keep a record of all the transactions made in the account.
Moreover, the cash book shows the actual inflows and outflows of cash, while the passbook only displays the transaction details related to the bank account.
In conclusion, both cash book and passbook play a crucial role in maintaining financial records. While the cash book helps organizations and individuals to record all the cash transactions made, the passbook helps customers to keep a record of their bank account transactions and available balance.
Table difference between cash book and pass book
| Cash Book | Pass Book | |
|---|---|---|
| Meaning | The record of cash transactions made by the business itself | The record of cash transactions made by the bank on behalf of the account holder |
| Maintenance | Maintained by the business itself | Maintained by the bank |
| Entries | Include all cash receipts and payments | Include all transactions that affect the bank balance of the account holder |
| Verification | Used to verify the accuracy of the bank statement | Used to verify the accuracy of the cash book |
| Updated | Updated on a daily basis | Updated periodically (e.g. monthly) |