The Cash Book a Cash Journal.
Notice that when Cash is Dr. for a certain amount (say $61 on Feb. 3), the opposing account (Mdse.) is Cr. for the same amount ; and when Cash is Cr. for a certain amount (say $300 on Feb. 2), the opposing account (Mdse.) is Dr. for the same amount. So that we might omit the cash transactions from the Journal and enter them only in the Cash Book, posting therefrom to the Ledger.
In Sets III. to VII. the Pupil will use the Cash Book as an auxiliary book ; he will not require to use the Ledger page column until he comes to use the Cash Book as a principal book in Set VIII. He may, however, commence to use the Cash Book as a journal earlier, say in Set IV.
There are other "short cuts" in connection with the Cash Book which will be taken up as the Pupil advances, from which he will learn to look upon this book as one of great importance in shortening the work of bookkeeping.
The Cash Book a Ledger Account.
Compare the sides of the following Cash Account (Sec. 66) from the Ledger of Set III., with the corresponding sides of the Cash Book (Sec. 63) of the same set. You will find the amounts the same, item for item, so that we might dispense with the Cash Account in the Ledger, and let the Cash Book take its place. Remember this fact while working Sets III. to VII., and when you come to Set VIII. you will be asked, not only to post from the Cash Book, but to have your Cash Account in the Ledger show only the Dr. and Cr. Cash Book totals ; and later you will be asked to omit the Cash Account altogether.
Cash Account from Ledger of Set III.
Pa. CASH. CR.