Which journal captures all cash payments related transactions?

The journal that captures all cash payments related transactions is specifically designated as the Cash Payments journal. This journal is focused on tracking all outflows of cash, providing a detailed record of every cash payment made by the organization. It is essential for accurate financial reporting and helps in monitoring cash management practices effectively.

This dedicated approach allows for easy identification of cash payment activities, ensuring that all transactions involving cash disbursements are accounted for properly. Unlike other journals, such as the General journal, which might include a variety of transactions beyond just cash payments, the Cash Payments journal narrows down the focus exclusively to these transactions, thereby facilitating easier reconciliation and analysis.

The Sales journal primarily captures sales made on credit and does not track cash payments, while the Cash Receipts journal records all incoming cash transactions rather than the outflow of cash. Hence, the focus on outflows makes the Cash Payments journal the correct choice for recording all cash payment transactions.