First of all as one can see the cash book is related to all the dealings one makes in cash, do not confuse with cheques. Furthermore there are two types of cashbooks, first we have the petty cash book which is used to record small daily expenses such as postage, stationary and much more. Then we have the main cash book where we record all the transactions coming into our account and all of the ones going out of our account. It keeps a record of all dealings and transactions and in the end gives a complete overview.