Cash disbursement journal is a book that is used to record all payments made in cash such as for accounts payable, merchandise purchases and operating expenses, also termed as cash payments journal. There are usually separate columns for the date, check number, explanation, cash, credit, purchase discount credit, other credit, accounts debited, accounts payable debit, purchases debit, and other debt.
In summary, all payments of cash will be recorded in the cash disbursement journal. Like the cash receipts journal, the cash disbursements journal contains three credit columns for cash, purchase discounts and other accounts as well as three debit columns for accounts payable, purchases and other accounts.
The columns for cash, purchase discounts, accounts payable, and purchases are totaled at the end of each month and these amounts posted to the appropriate general ledger accounts. The completion of these entries is noted in the cash disbursements journal by placing the appropriate general ledger account number below the total of each column. Since items in the other accounts columns are posted individually, the totals of these columns are not posted. Accordingly, an X is placed below the total of these columns to indicate that the total was not posted. For accounting service matters, please contact us at 6817 4500.