Monday, April 26, 2010

What is the reason to say that the cash book has a prominent place among the books of prime entry?

What is the reason to say that the cash book has a prominent place among the books of prime entry?

What is the reason to say that the cash book has a prominent place among the books of prime entry?
Because it is a lifeblood of a company. It is an immediate sign on the health of a company. You have to pay the goods you purchased, the services you obtained and investment in necessary equipments. Once your inflow of real cash is lower than the necessary expenses, then the fate of your company is critical. Of all the books of account, this primary entry of cash book is the most important one in reflecting your business prosperity or critical point. Without this book, you are likely to be blind with your performance.


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