How the cash book fits into the accounting system

When the cash book is used as part of the double entry system it records both the credit and debit entries (when a receipt is received this gets posted to the debit side and any payment made is recorded on the credit side.

However when the cash book is used as a prime book of entry it is only used to capture the detail regarding receipts and payments. In this case the entries are then transferred into the ledger accounts. In this case we record these entries into a ledger account called Bank.