Differentiate between cash books and ledger.

Cash Book:

1. Nature: The cash book is a subsidiary book that records all cash transactions, including receipts and payments, in chronological order.

2. Content: It contains details of cash receipts in the debit side and cash payments in the credit side. It includes columns for date, particulars, voucher number, and amount.

3. Purpose: The cash book helps in maintaining a record of cash transactions, reconciling cash balances, and monitoring cash flow.

4. Scope: It records only cash transactions, excluding transactions involving non-cash items.

Ledger:

1. Nature: The ledger is a principal book of accounts that contains separate accounts for each type of asset, liability, income, and expense.

2. Content: It contains detailed accounts, each with a debit and credit side, to record transactions related to specific items or categories.

3. Purpose: The ledger helps in summarizing and classifying transactions, providing a detailed record of each account, and preparing financial statements.

4. Scope: It records all types of transactions, including cash and non-cash transactions, to provide a complete picture of the financial position of a business.

Difference:

1. Scope: The cash book records only cash transactions, while the ledger records all types of transactions.

2. Nature: The cash book is a subsidiary book, while the ledger is a principal book of accounts.

3. Content: The cash book contains a chronological record of cash transactions, while the ledger contains detailed accounts for each type of transaction.

4. Purpose: The cash book helps in monitoring cash flow, while the ledger helps in summarizing and classifying all transactions for reporting and analysis.

In summary, while the cash book focuses on recording cash transactions, the ledger provides a comprehensive record of all transactions, helping in the preparation of financial statements and analysis of a business's financial position.