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Lesson 47 of 48 – Cash Book in Tally Prime
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💵 Cash Book in Tally Prime

Cash Book is an accounting report that records every cash transaction of a business. It contains all cash receipts, cash payments and the running cash balance. It helps businesses monitor daily cash flow and verify cash transactions.

Lesson Objective Learn how to view the Cash Book, understand cash transactions, verify receipts and payments, print reports and maintain accurate cash records in Tally Prime.
1. What is Cash Book?

The Cash Book is a report that records all cash-related transactions entered in Tally Prime.

Feature Description
Cash Receipts Money received in cash.
Cash Payments Money paid in cash.
Running Balance Displays current cash balance.
Date-wise Transactions Shows transactions by date.
Cash Verification Helps verify physical cash.
2. Importance of Cash Book
  • Tracks daily cash receipts and payments.
  • Shows current cash balance.
  • Helps detect cash shortages.
  • Supports daily cash verification.
  • Improves financial control.
  • Assists in auditing.
  • Provides accurate cash history.
  • Reduces cash handling errors.
The Cash Book should be reviewed daily to ensure that the physical cash matches the book balance.
3. Information Available in Cash Book
Information Description
Date Transaction date.
Voucher Number Voucher reference.
Voucher Type Receipt, Payment, Contra, Sales, etc.
Particulars Related ledger or party.
Debit Cash received.
Credit Cash paid.
Balance Running cash balance.
The Cash Book provides a complete history of all cash movements in the business.
4. How to Open Cash Book
Steps
  1. Open Tally Prime.
  2. Go to Display More Reports.
  3. Select Cash/Bank Books.
  4. Choose Cash Book.
  5. Select the required period.
  6. Review cash transactions.
Use the period option to review cash transactions for any day, week, month or financial year.
5. Types of Cash Transactions
Transaction Example
Cash Receipt Cash received from customer.
Cash Payment Office rent paid in cash.
Cash Deposit Cash deposited into bank.
Cash Withdrawal Cash withdrawn from bank.
Cash Sales Goods sold for cash.
Cash Purchase Goods purchased in cash.
Every cash transaction recorded in vouchers is automatically reflected in the Cash Book.
6. Cash Book Filters & Search Options

Tally Prime provides powerful filtering and search options to quickly locate cash transactions. These options help accountants review specific entries without scrolling through the entire Cash Book.

Available Filters
Filter Purpose
Date Range View transactions for a selected period.
Voucher Type Display only Receipt, Payment or Contra vouchers.
Ledger View transactions related to a particular ledger.
Amount Search transactions by value.
Narration Locate vouchers using narration text.
Filtering the Cash Book makes verification faster, especially when handling large numbers of transactions.
7. Viewing, Altering & Printing the Cash Book

You can open any transaction directly from the Cash Book to verify or modify voucher details.

View a Voucher
  1. Open Cash Book.
  2. Select the required transaction.
  3. Press Enter.
Alter a Voucher
  1. Open the voucher.
  2. Modify the required details.
  3. Press Ctrl + A to save.
Print the Cash Book
  1. Open Cash Book.
  2. Select the required period.
  3. Press Alt + P.
  4. Choose Print.
Action Shortcut
Open Voucher Enter
Save Voucher Ctrl + A
Print Report Alt + P
Delete Voucher Alt + D
Always verify voucher details before saving changes, as modifications affect accounting reports.
8. Cash Verification & Cash Balance Management

The Cash Book helps businesses compare the physical cash available with the balance shown in Tally Prime.

Verification Purpose
Opening Balance Verify the starting cash.
Cash Receipts Confirm all money received.
Cash Payments Verify all expenses and payments.
Closing Balance Match with physical cash.
Cash Difference Identify shortages or excess cash.
Example
Description Amount
Opening Balance ₹20,000
Total Receipts ₹55,000
Total Payments ₹38,000
Closing Balance ₹37,000
The physical cash available should always match the closing balance shown in the Cash Book.
9. Cash Book Reports & Verification

Regular verification of the Cash Book helps maintain accurate accounting records and strengthens internal financial controls.

Verification Item Purpose
Voucher Date Verify transaction date.
Voucher Number Check proper numbering.
Ledger Name Verify correct ledger.
Receipt Amount Confirm cash received.
Payment Amount Confirm cash paid.
Running Balance Verify balance accuracy.
Daily Verification Checklist
  • Verify opening cash balance.
  • Check all cash receipts.
  • Verify cash payments.
  • Review voucher narrations.
  • Match closing balance with physical cash.
  • Review modified vouchers.
Daily cash verification helps prevent fraud and accounting mistakes.
10. Common Cash Book Mistakes
Common Mistake Correct Practice
Wrong Voucher Date Verify the transaction date before saving.
Incorrect Cash Ledger Select the correct Cash Ledger.
Duplicate Cash Entry Review existing vouchers before entering new ones.
Missing Narration Add a meaningful narration to every voucher.
Incorrect Cash Amount Verify receipt and payment amounts carefully.
Ignoring Daily Cash Verification Compare physical cash with the Cash Book daily.
Unauthorized Voucher Deletion Restrict deletion rights to authorized users.
No Data Backup Take regular backups of company data.
Maintaining an accurate Cash Book improves cash control, simplifies auditing and supports reliable financial reporting.
11. Real Business Case Studies

Let's understand how different businesses use the Cash Book to manage daily cash transactions and maintain accurate cash records.

Business Cash Book Usage Purpose
Retail Store Daily Cash Sales & Expenses Track daily cash collections and shop expenses.
School / College Student Fee Collection Monitor cash fees and petty cash expenses.
Hospital Patient Cash Payments Verify cash receipts and operational expenses.
Manufacturing Company Petty Cash & Supplier Payments Monitor factory cash expenses.
IT Company Office Expenses Track daily office cash payments.
NGO / Trust Donation Collections Maintain transparent cash records.
A properly maintained Cash Book helps businesses control cash flow and simplifies financial auditing.
12. Complete Cash Book Verification Checklist
Checklist Status
Opening Cash Balance Verified ✔
Cash Receipts Recorded ✔
Cash Payments Recorded ✔
Voucher Numbers Verified ✔
Voucher Dates Checked ✔
Ledger Accounts Verified ✔
Narrations Reviewed ✔
Duplicate Entries Checked ✔
Physical Cash Counted ✔
Closing Balance Matched ✔
Cash Book Printed/Exported ✔
Company Data Backup Taken ✔
Complete this checklist daily to maintain accurate cash records and reduce accounting errors.
13. Professional Cash Management Best Practices
  • Record every cash transaction immediately.
  • Verify the physical cash balance every day.
  • Use meaningful narrations in all cash vouchers.
  • Avoid duplicate cash entries.
  • Limit cash payments whenever possible.
  • Review the Cash Book before closing business each day.
  • Restrict cash voucher editing and deletion to authorized users.
  • Maintain supporting bills and receipts.
  • Export or print Cash Book reports periodically.
  • Take regular backups of Tally Prime company data.
Good cash management improves business liquidity, reduces fraud risk and strengthens financial control.
14. Practical Exercise & Interview Questions
Practical Exercise
  1. Create a Cash Receipt Voucher.
  2. Create a Cash Payment Voucher.
  3. Record a Cash Sale.
  4. Record a Cash Purchase.
  5. Open the Cash Book.
  6. Verify the running cash balance.
  7. Print the Cash Book.
  8. Export the Cash Book to PDF or Excel.
Interview Questions
  1. What is the Cash Book in Tally Prime?
  2. Why is the Cash Book important?
  3. How do you open the Cash Book?
  4. Which vouchers affect the Cash Book?
  5. What is the purpose of the running cash balance?
  6. How do you verify cash receipts?
  7. How do you verify cash payments?
  8. Why should physical cash match the Cash Book?
  9. How do you print the Cash Book?
  10. Can the Cash Book be exported?
  11. What information is available in the Cash Book?
  12. How do you correct an incorrect cash voucher?
  13. Why should voucher narrations be maintained?
  14. How often should the Cash Book be reviewed?
  15. How does the Cash Book help during audits?
  16. How can duplicate cash entries be avoided?
  17. What precautions should be taken while deleting vouchers?
  18. Why is daily cash verification important?
  19. How does Tally Prime simplify cash management?
  20. Why is the Cash Book important for accountants?
15. Lesson Summary
  • Learned the purpose of the Cash Book.
  • Reviewed cash receipts and cash payments.
  • Applied filters and search options.
  • Viewed, altered and printed Cash Book reports.
  • Verified cash balances and transactions.
  • Studied practical business examples.
  • Completed practical exercises.
  • Prepared for accounting interviews.
  • Learned professional cash management techniques.
  • Built a strong understanding of cash accounting.
Congratulations! You can now confidently use the Cash Book in Tally Prime to monitor cash transactions, verify balances, review reports and maintain accurate cash records.

🧠 Quick Quiz

Which report in Tally Prime records all cash receipts and cash payments?



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