Cash Disbursements Journal
Understanding this form
The Cash Disbursements Journal is a financial record-keeping tool designed to help businesses track their outgoing cash payments and disbursements. This form is essential for maintaining accurate financial records and ensuring that all cash leaving the business is documented. It is often used in conjunction with the Cash Receipts Journal, which records incoming cash transactions, providing a comprehensive overview of the business's cash flow.
Key components of this form
- Month: Specify the month for which the disbursements are recorded.
- General Ledger Number: Enter the associated ledger number for tracking.
- Date: Document the date of each disbursement.
- Check Payee: Record the name of the recipient or payee for each disbursement.
- Account Credited: Indicate the account that will be credited.
- Account Debited: Note the account that will be debited for the payment.
- Amount Payable: Specify the amount of each disbursement.
- Discount: Indicate any applicable discounts.
- Other: Use this section for any additional relevant information.
Common use cases
This form is useful when a business needs to maintain clear records of cash outflows throughout the month. It can be used for various transactions, including paying suppliers, settling invoices, or other operational expenses. By utilizing a Cash Disbursements Journal, businesses can better manage their cash flow and prepare for financial reviews or audits.
Who should use this form
- Small business owners who handle their own accounting.
- Financial staff responsible for tracking disbursements.
- Accountants looking to improve the accuracy of financial records.
- Startups needing to establish a foundation for financial tracking.
Completing this form step by step
- Begin by entering the month for which the records are being kept.
- Add the appropriate general ledger number associated with this journal.
- For each transaction, note the date when the disbursement occurred.
- Fill in the check payee's name and specify both the credited and debited accounts.
- Document the amount payable for each disbursement, including any applicable discounts.
- Use the 'Other' field for any additional notes or relevant information.
Does this form need to be notarized?
This form usually doesn’t need to be notarized. However, local laws or specific transactions may require it. Our online notarization service, powered by Notarize, lets you complete it remotely through a secure video session, available 24/7.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Mistakes to watch out for
- Failing to enter all disbursements consistently throughout the month.
- Not matching payments to the correct accounts, leading to financial discrepancies.
- Neglecting to note the applicable discounts when relevant.
- Leaving the 'Other' field blank when there is additional useful information.
Why use this form online
- Immediate access to download and complete the form at any time.
- Easily editable fields to update records as needed.
- Structured format simplifies the tracking of cash disbursements.
- Reliability in maintaining detailed financial records.
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FAQ
Create the sales entry Record your cash sales in your sales journal as a credit and in your cash receipts journal as a debit. Keep in mind that your entries will vary if you offer store credit or if customers use a combination of payment methods (e.g., part cash and credit).
In business accounting, a disbursement is a payment in cash during a specific time period and is recorded in the general ledger of the business. This record of disbursements shows how the business is spending cash over time. Payments of dividends to shareholders are often termed disbursements.
The cash receipts journal is used to record all transactions involving the receipt of cash, including such transactions as cash sales, the receipt of a bank loan, the receipt of a payment on account, and the sale of other assets such as marketable securities.
When recording cash payments to suppliers it is quite common for the cash disbursement journal to include a discounts received column. By using a discounts received column, the business can use the cash disbursement journal to record the invoiced amount, the discount received, and the cash payment.
A cash disbursement journal is a record kept by a company's internal accountants that itemizes all financial expenditures a business makes before those payments are posted to the general ledger.
In other words, a cash disbursements journal is used to record any transaction that includes a credit to cash. All cash inflows are recorded in another journal known as cash receipts journal.
When recording cash payments to suppliers it is quite common for the cash disbursement journal to include a discounts received column. By using a discounts received column, the business can use the cash disbursement journal to record the invoiced amount, the discount received, and the cash payment.
For example, cash disbursed to pay bills is credited to the Cash account (which goes down in value) and is debited to the account from which the bill or loan is paid, such as Accounts Payable.
