Payment of monthly rent should be recorded in which journal?

The recording of monthly rent payments is appropriately placed in the Cash Payments journal because this journal is specifically designed to track all transactions that result in cash being disbursed by the business. Rent is an expense incurred by the business, and when cash is paid out for this expense, it needs to be documented to maintain accurate financial records.

In the context of accounting, the Cash Payments journal captures all outgoing cash flows, which include not only rent but also other types of expenses like utilities and salaries. This allows businesses to effectively monitor their cash outflows and manage their finances. Keeping rent payments in this journal ensures that the accounting records reflect all cash expenditures accurately.

While the Cash Receipts journal records inflows of cash, such as payments received from customers, and the Purchases journal is typically used for inventory or goods bought on account, the General journal captures miscellaneous transactions that do not fit into other categories. Therefore, these journals are not suitable for documenting regular rent payments, making the Cash Payments journal the right choice for this particular transaction.