Q.When a firm maintains a simple cash book, it need not maintain ________ in the Ledger.

A simple cash book doubles as the Cash account, so a separate Cash account need not be kept in the ledger — option (c).

Why:

• A simple (single-column) cash book records all cash receipts on its debit side and all cash payments on its credit side.
• It is a book of both original entry and ledger at the same time — its balance is exactly what a Cash account in the ledger would show. …