Definition (1):
Cash payments journal refers to a special journal where companies record all disbursements of cash or a cash payment journal records all cash paid. This journal is also known as the cash disbursements journal. Entries are made from pre-numbered checks. Because companies make cash payments for various purposes, the cash payments journal has multiple columns.
Definition (2):
Cash payments journal is a journal used for recording all cash payments paid by the business. In other words, it is a special journal used for recording cash disbursements done by check. Some examples of chief cash payments in business include cash purchases of supplies, merchandise, equipment, or other assets; payments to creditors; cash payments for expenses like rent, salaries, taxes, and insurance, etc.; proprietor’s personal drawings; and cash refunds to clients for return of merchandise sold for cash.
Cash payments journal is generated when the business makes the accounting records by applying an accounting manual and especially, there are numerous cash payments transactions. More specifically, when there are transactions of large cash payments in the business every day. This journal records these large transactions separately from the general journal. Thus it helps the business to reduce the large transaction amounts from the general journal.