Bank Book is also a subsidiary book similar to Cash Book which records all the receipts and payments made through the bank. It is also known as Bank Journal.
Usually, big companies maintain this book where the volume of bank transactions is very high. The small business maintains their records with the along with the cash book.
A bank book consists of two sides, Receipts side and payment side. Receipts are debited and payments are credited in the bank book.
Maintaining a bank journal helps to ease the process of bank reconciliation. It also helps to decrease the chances of missing entries or any mistake.
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sir
i am confused, how a receipt can be debited, for example i received Rs.1000 in my account balancing 5000 after receipt of 1000 it will be Rs.6000, how it will be debit, isn’t it credit?? please guide me
As you mentioned above that
“A bank book consists of two sides, Receipts side and payment side. Receipts are debited and payments are credited in the bank book.”
The Bank book is prepared by the account holder and not by the bank. As per the accounting rule, debit what comes in ad credit what goes out. According to your example, receipt of Rs.1000 adds to the balance and payments decrease it. I hope, it is clear now.