The advantages of cash book are as follows:
- It prevents duplication of work in entering cash transaction in journal and then posting the same into the ledger.
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- Cash and Bank transactions can be recorded in cash book.
- It is possible to find out daily cash and bank balance.
- Cash book also serves the purpose of book of original entry as well as ledger.
- Frauds involving cash are likely to be minimized and where committed are likely to be detected at an early stage.