Which Journal Is Used To Record Disbursements By Check / Cheque? | MCQ Question Answer

The correct answer of this multiple choice question is A, as we made disbursements by check / cheque i.e., the Cash is paid out either to purchase goods or services or paid to suppliers / vendors for goods or services purchased on credit / account.

The possible entries to record for disbursements by check are shown below

(a) If Goods Or Services Purchased By Check / Cheque

                      Purchases a/c  XXX

                                                  Cash a/c  / Bank a/c  XXX

                 (Disbursements Made By Check To Buy Goods Or Services)

a) If Payments Made To Vendor

                            Accounts Payable a/c  XXX

                                                               Cash a/c  / Bank a/c  XXX

                                   (Disbursements Made By Check To Vendors)

So, disbursement by check / cheque is either recorded in accounts payable journal or purchases journal depending upon circumstances i.e., if check paid to vendors, then such disbursements are recorded in accounts payable journal and if check paid to make cash purchases, then on purchases journal.