What is a Cash Payment Journal

Cash Payment Journal or Cash Disbursement Journal is a Special Journal as it records only Cash Payments paid by the company usually to its suppliers. Cash Payments are credited on Cash Payment Journal as when we paid cash, it decreases and also as it is going out of the business, so we credit it according to the Rules of Debit And Credit.

You Can Also Study, “Cash Receipts Journal”

Cash Payments Journal Entry

For Example, when a company paid Cash Rs. 5000 to its suppliers for the goods purchased, then the Journal Entry is made with the debit of Supplier Account (Accounts Payable) and Credit of Cash Account.

So, we can say that a cash payment journal is used to record cash payments only.