How can i make entries for cash transactions?

If you want to keep track of the cash you spend, yes you would create an account called Petty Cash. When you cash a check or take money out of the ATM, you would use [Petty Cash] as the Category for that transaction, to transfer the money to your petty cash account. When you spend the money, you would record the payee and assign it to the appropriate Category - Haircuts, Dining, etc.

Personally, I use very little cash these days so when I get money from the ATM I use a Payee of "Cash J" and assign it to the general Household category.

I called mine, Pocket Cash, I transfer $ from checking to it when I use the ATM or do a withdrawal by teller.  I only track my  only "big" cash expenditures and every few months I count my cash on hand and do a reconcile of Pocket Cash and the adjustment is against MISC category since it is only a few $ here and there and probably for a cup of coffee or something minor.