Cash Disbursement Journal Entry

Cash disbursements refer to the payments made by a business in cash or through bank transfers to settle various expenses, liabilities, or purchases. Recording cash disbursements accurately is crucial for maintaining proper financial records.

Scenario: Various Cash Disbursements

1. Payment of rent.
2. Payment of salaries.
3. Purchase of office supplies.

Example Journal Entries

Example 1: Payment of Rent

Particulars	Debit (₹)	Credit (₹)
Rent Expense A/c	12,000
To Cash/Bank A/c		12,000
(Being rent paid in cash)

Example 2: Payment of Salaries

Particulars	Debit (₹)	Credit (₹)
Salaries Expense A/c	25,000
To Cash/Bank A/c		25,000
(Being salaries paid in cash)

Example 3: Purchase of Office Supplies

Particulars	Debit (₹)	Credit (₹)
Office Supplies Expense A/c	5,000
To Cash/Bank A/c		5,000
(Being office supplies purchased and paid in cash)

Detailed Examples:

Example 4: Payment of Utilities

Particulars	Debit (₹)	Credit (₹)
Utilities Expense A/c	8,000
To Cash/Bank A/c		8,000
(Being electricity bill paid)

Example 5: Payment to Creditors

Assume a company pays ₹35,000 to a creditor for goods purchased on credit.

Particulars	Debit (₹)	Credit (₹)
Accounts Payable A/c	35,000
To Cash/Bank A/c		35,000
(Being payment made to a creditor)

Example 6: Payment of Insurance Premium

Assume a company pays an insurance premium of ₹15,000.

Particulars	Debit (₹)	Credit (₹)
Insurance Expense A/c	15,000
To Cash/Bank A/c		15,000
(Being insurance premium paid)

Additional Examples:

Example 7: Payment for Office Furniture

Assume a company pays ₹60,000 for office furniture.

Particulars	Debit (₹)	Credit (₹)
Office Furniture A/c	60,000
To Cash/Bank A/c		60,000
(Being payment for office furniture)

Example 8: Payment of Advertising Expense

Assume a company pays ₹20,000 for advertising expenses.

Particulars	Debit (₹)	Credit (₹)
Advertising Expense A/c	20,000
To Cash/Bank A/c		20,000
(Being payment for advertising expenses)