* Paying salaries and wages: This includes payroll disbursements to employees.
* Paying invoices and expenses: Businesses make disbursements to pay for goods and services.
* Making payments to suppliers: Disbursements are made to suppliers for materials or other items purchased.
* Paying taxes and other liabilities: Disbursements are used to settle financial obligations, such as taxes and loan payments.
* Distributing funds to beneficiaries: In the context of trusts or estates, disbursements are made to beneficiaries as per the terms of the trust or estate.
In simpler terms: Disbursement is when money is paid out from a source to someone else.
Other relevant information:
* Disbursements are often recorded and tracked in financial statements and accounting records.
* Disbursement systems are used by organizations to manage and control the process of paying out funds.
* Disbursement procedures are the specific steps involved in making payments.
Examples of Disbursement:
* A company pays its employees' salaries.
* A government agency makes a disbursement to a contractor for a construction project.
* An individual pays their monthly rent using a disbursement from their bank account.
* A charity distributes funds to beneficiaries.