Cash Disbursement Journal


DEFINITION of 'Cash Disbursement Journal'

A record kept by accountants to record all financial expenditures made by a company. Cash disbursement journals serve a number of functions, such as a source for recording tax write-offs and the categorization of other expenses. This journal essentially functions as a checkbook ledger, for all practical purposes.

BREAKING DOWN 'Cash Disbursement Journal'

Cash disbursement journals may record varying types of expenses by assigning each type of expense a code, or by recording the various expenses in different columns. These journals are used to create annual balance sheets and other financial statements.

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  1. What is the difference between drawdown and disbursement?

    In finance, both drawdown and disbursement have multiple meanings. They are similar in that they both refer to a transfer ... Read Full Answer >>
  2. Do dividends affect working capital?

    Regardless of whether cash dividends are paid or accrued, a company's working capital is reduced. When cash dividends are ... Read Full Answer >>
  3. Do prepayments provide working capital?

    Prepayments, or prepaid expenses, are typically included in the current assets on a company's balance sheet, as they represent ... Read Full Answer >>
  4. Does working capital include salaries?

    A company accrues unpaid salaries on its balance sheet as part of accounts payable, which is a current liability account, ... Read Full Answer >>
  5. What is a profit and loss (P&L) statement and why do companies publish them?

    A profit and loss (P&L) statement, or balance sheet, is essentially a snapshot of a company's financial activity for ... Read Full Answer >>
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