The cash disbursement journal is a record of every company payment and cash expenditure made in cash or cash equivalents. The entries are copied over into the general ledger, usually monthly, to ...

The cashbook and ledger enjoy what can be considered a confusing relationship because the cashbook actually serves as a ledger. In companies that handle a large amount of cash debit and credit ...

General Ledger Purchase Example. ... When the company pays the balance of $450 due to the supplier, enter it on the payments side of the cash book.

The general ledger shows how assets like inventory, receivables, and cash are connected. It also breaks down the way a sale is recorded, as well as how revenue and retained earnings are handled.

For example, an investor who has no cash in an account may decide on Monday to make a stock purchase worth $10,000. To pay for this, the investor sells other stock shares on Tuesday worth $10,000.