All 26 Cash Book & Petty Cash questions
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What is petty cash and the petty cash book? What is a petty cash voucher? What is the difference between cash and bank columns in the cash book? How do you balance the cash book? What does a debit balance and a credit balance mean in the cash book? What is the difference between cash and bank in bookkeeping? What is a two-column versus three-column difference in one line? Why must cash receipts be banked promptly? What is the imprest system for petty cash? How is the petty cash book reimbursed and posted?
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What is the difference between the cash book and the bank statement?

Beginner

Answer

The cash book is the business's own record of bank transactions; the bank statement is the bank's record of the same account. They often differ temporarily due to timing (unpresented cheques, outstanding lodgements) and items known only to one party (bank charges, direct debits). A bank reconciliation explains the differences.
Real-world example The cash book shows a cheque paid immediately, but the bank statement shows it only when it clears—hence a difference.

Common follow-ups: Why do the two records differ? | What resolves the differences?

Bank Reconciliation Books of Prime Entry Cash Book & Petty Cash
All 26 Cash Book & Petty Cash questions