What do you mean by disbursement?
Definition of disbursement : the act of paying out money especially from a fund : the act of disbursing the disbursement of government funds also : funds paid out received monthly disbursements.
What is the meaning of pending disbursement?
Pending disbursement clauses are inserted in Loan Policies when future disbursements of loan proceeds are contemplated. These proceeds may be advanced for construction or other purposes. The Company generally uses special pending disbursement clauses on construction loans that require downdates.
Is there such a word as disbursement?
Disburse is typically used in the context of finance and business—especially when the exchange of money is formal. The noun form of disburse is disbursement, meaning the act of paying out money, or the payment itself. Disburse can also mean to distribute or scatter, but this sense is much less commonly used.
What is the difference between disbursement and payment?
A payment is the agreed value of a product or service. A disbursement is a payment from a dedicated fund.
What is disbursement and remittance?
As nouns the difference between remittance and disbursement is that remittance is a payment to a remote recipient while disbursement is the act, instance, or process of disbursing.
What is disbursement in banking?
A disbursement is the actual delivery of funds from one party’s bank account to another. In business accounting, a disbursement is a payment in cash during a specific time period and is recorded in the general ledger of the business.
What is the difference between a disbursement date and closing date?
If you’re buying a home, your disbursement date is considered your “close of escrow” date. On the other hand, for primary refinances, your disbursement date is the day after your recission period ends—or 4 days after you’ve signed your closing package.
What is disbursement?
Disbursement is the act of paying out or disbursing money. Examples of disbursements include money paid out to run a business, cash expenditures, dividend payments, or the amounts that a lawyer…
What should be included in a disbursement form?
An entry for a disbursement should include the date, payee name, amount debited or credited, payment method, the purpose of the payment, and its effect on the firm’s overall cash balance.
What is a negative disbursement from a loan?
A loan disbursement can be positive or negative. While a positive disbursement results in a credit to an account, a negative disbursement results in an account debit. Examples of a negative disbursement are evident when funds are withdrawn from a student’s account after being overpaid funds for financial aid.
How do you record disbursements in accounting?
A bookkeeper records the transactions and posts them to ledgers, such as the general ledger and accounts payable ledger. An entry for a disbursement should include the date, payee name, amount debited or credited, payment method, the purpose of the payment, and its effect on the firm’s overall cash balance.