How to Use a Disbursement Journal

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When cash is passed to another person in a business environment, a record of the transaction should be recorded. Often, employees are given access to cash in order to pay for small purchases made on behalf of the company. The cash fund is called petty cash, used to pay for things such as office supplies, meals and gifts. All disbursements should be kept track of in a journal, along with all receipts for each payout.

Create journal columns for the following fields: Date, Recipient, Description and Amount.

Get the receipt for each purchase and count the exact amount of the purchase, including tax back to the employee.

 

Fill in all journal fields and keep the receipt with the journal. Record credits whenever the fund is replenished.

 

Cross-check the receipts for each purchase with the ledger entries at the end of the month.

 

Subtract the total monthly disbursements from the balance at the first of the month. Verify that the amounts match, or make a note and an adjusting entry to account for the difference.

 

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About the Author

Alec Preble began writing professionally in 2007. He began blogging in 2006, writing media reviews for the "Post-Standard" from 2007-2008. Preble received a Bachelor of Arts in English from Empire State College in 2005.

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