Cash Payments Journal
Retail businesses like grocery stores purchase merchandise frequently. The Cash Payments journal helps maintain a record of frequent purchases and their payments. This journal is used to record all transactions in which cash is paid out (decreases).
The types of transactions that can be recorded in this journal include:
- Payments to creditors for items bought on account
- Cash purchases of merchandise and other assets
- Payments for expenses, wages, and salaries
- Cash decreases for bank service charges and bankcard fees
The source documents for the journal entries are check stubs and bank statements. The cash payments journal is also called the cash disbursement journal.
The image below is an example of a Cash Payments Journal. Click on the highlighted fields to learn more.
Click the Play button to view an example illustrating the steps to record a Cash Payment Journal.