What is a Cash Journal?
A cash journal is a simple hard copy or electronic document that is used to make immediate accounting entries of both receipts and expenditures. Transactions that are entered into a cash journal are usually recorded daily, or at least in chronological order. Part of the charm of a cash journal is that financial transactions entered as line items can be reviewed quickly when necessary, as well a providing a quick reference document when entering the transactions into other sections of the accounting books. A cash journal can be used for keeping up with a broad range of receipts and payments, or may be utilized to track one area of activity. Many businesses choose to maintain a simple cash journal as a means of keeping a record of income and disbursements associated with a petty cash fund. This can allow authorized employees to quickly handle a transaction out of petty cash and make a quick entry with the basic information. At a later time, the transaction can be fully documented in the
