Cash Disbursement Journal

What is a 'Cash Disbursement Journal'

A cash disbursement journal is 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.

RELATED TERMS
  1. Journal

    1. In accounting, a first recording of financial transactions ...
  2. Disbursement

    The act of paying out or disbursing money. Disbursements can ...
  3. Cash Book

    A financial journal that contains all cash receipts and payments, ...
  4. Adjusting Journal Entry

    An entry in financial reporting that occurs at the end of a reporting ...
  5. Cash Concentration And Disbursement ...

    A type of electronic payment used to transfer funds between remote ...
  6. Accounting Records

    All of the documentation and books involved in the preparation ...
Related Articles
  1. Trading

    4 Reasons Why You Need A Forex Trading Journal

    Most brokers will provide you with trade records, but it's also important to keep track on your own.
  2. Investing

    What's Recorded in a Cash Book?

    A cash book is an accounting book that records all cash receipts and cash payments before they’re recorded in a business’s general ledger.
  3. Investing

    Understanding Write-Offs

    Write-off has different meanings depending on the context in which it is used, but generally refers to a reduction in value due to expense or loss.
  4. Investing

    What's a General Ledger?

    As the heart of the double-entry accounting system, the general ledger is the record of a company's entire financial transaction history. The left side of the general ledger is for debits: assets, ...
  5. Investing

    Understanding the Accounting Cycle

    An accounting cycle consists of the traditional procedures performed to record business events and transactions in a company’s accounting records.
  6. Investing

    What Does Debit Mean?

    Debit is an accounting term used to refer to the left side of an accounting journal entry. Each debit must be offset by an equal credit entry.
  7. Retirement

    The Essentials Of Corporate Cash Flow

    Tune out the accounting noise and see whether a company is generating the stuff it needs to sustain itself.
  8. Investing

    Cash Flow On Steroids: Why Companies Cheat

    Pressure to be the best can sometimes push corporations to cheat. Learn how they do it and how to spot it.
  9. Investing

    Accounting Basics: The Basics

    By Bob Schneider The Difference Between Accounting and Bookkeeping Bookkeeping is an unglamorous but essential part of accounting. It is the recording of all the economic activity of an organization ...
  10. Investing

    Popular Resources for Equity Research and Analysis: Chapter 8: Periodicals and Subscription-Based Resources

    Moving into popular equity resources that require a monetary commitment by investors, financial periodicals are valuable for uncovering stock insight and investable ideas. Top on this list is ...
RELATED FAQS
  1. What's the difference between the general ledger and a general journal?

    Keeping records for most organizations require a double-entry bookkeeping system, which revolves around transactions in the ... Read Answer >>
  2. What is the difference between drawdown and disbursement?

    Learn about some of the many definitions for financial drawdowns and disbursements, which represent transfers of funds between ... Read Answer >>
  3. How does bank reconciliation affect a cash control policy?

    Understand how the bank reconciliation process augments a company's cash controls and is an essential part of proper cash ... Read Answer >>
  4. What is the best way to disburse funds from a trust and how should we handle the ...

    My daughter is a trust beneficiary. The trustees attorney keeps asking her how she wants her money disbursed - cash or account ... Read Answer >>
  5. How can an investor determine a company's annual return from looking at its financial ...

    Understand what a share premium account is, what funds go into the account and the specific purposes for which the funds ... Read Answer >>
  6. What would happen if you tried to skip steps in the accounting cycle?

    Understand what would happen if a company or accounting department tried to skip steps in the accounting cycle. Learn why ... Read Answer >>
Hot Definitions
  1. Glass-Steagall Act

    An act the U.S. Congress passed in 1933 as the Banking Act, which prohibited commercial banks from participating in the investment ...
  2. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  3. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  4. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  5. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  6. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
Trading Center