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Cash disbursement journals should include: Date. Payee name. Amount debited or credited. Accounts involved (e.g., payment method) Purpose of the transaction.
The term disbursement may be used to describe money paid into a business' operating budget, the delivery of a loan amount to a borrower, or the payment of a dividend to shareholders.
Disbursements are payments in cash or cash equivalents. In comparison, reimbursement refers to the actual payment to cover the original disbursement. For example, when attorneys pay expenses on behalf of a client, the money paid to a third party is a disbursement.
Disbursements are payments in cash or cash equivalents. In comparison, reimbursement refers to the actual payment to cover the original disbursement. For example, when attorneys pay expenses on behalf of a client, the money paid to a third party is a disbursement.
The cash disbursement journal includes the columns of date, check number, and name of the payee. The amount of disbursement is recorded in the cash column, and the title is recorded in the corresponding account debited column. Each account has a reference number shown in the posting reference (PR) column.