Which transactions are documented in the Cash Disbursements Journal?

The Cash Disbursements Journal is used to record all transactions involving the outflow of cash from a business. Transactions typically documented in this journal include payments made to suppliers for inventory or services, disbursements for operating expenses, repayment of loans, and any other expenditure that involves a direct reduction in the company’s cash balance. Each entry in the Cash Disbursements Journal generally includes the date of the transaction, the amount paid, the payee or vendor, the relevant account debited, and any other pertinent details such as check numbers or transaction IDs, ensuring a comprehensive and organized record of all cash payments.