In which journal should the transaction of paying the month’s rent be recorded?

The transaction of paying the month’s rent should be recorded in the Cash Disbursements journal because this journal specifically tracks all payments made in cash. When rent is paid, cash is leaving the business, which directly impacts the cash flow and needs to be documented appropriately. The Cash Disbursements journal serves to provide detailed records of all cash outflows, including payments for expenses like rent.

Recording the rent payment in this journal allows for proper tracking of cash expenses, facilitating financial management and ensuring that all disbursements are accurately reflected in the accounting records. Other journals, such as Sales, Purchases, and General, serve different purposes—Sales for revenue transactions, Purchases for inventory and asset acquisitions, and General for miscellaneous transactions—but do not specifically address the cash outflow for rent expenses.