Question 4 of 45beginner🧠 RememberMCQ1 mark

Cash book does not record transaction of:

Exercise: Test Your Understanding - I | Q: 1(d)
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Explanation

The Cash Book is a subsidiary book that records ONLY transactions of cash nature — meaning all cash receipts and cash payments. Transactions of credit nature, where cash is not involved at the time of transaction (such as credit purchases or credit sales), are NOT recorded in the Cash Book. These credit transactions are instead recorded in other subsidiary books like the Sales Book, Purchases Book, or Journal Proper. Therefore, the correct answer is Option (B) Credit nature.