The general fund of Battle Creek budgeted a transfer to its capital projects fund for $110,000 to be used in operations during the year ended June 20,2009.On September 15,2008,the general fund transferred $110,000 to the capital projects fund.What account should be debited in the general fund on September 15 to record this transfer?
A)Appropriations
B)Expenditures
C)Budgetary Fund Balance-Reserved For Encumbrances
D)Other Financing Uses-Transfer Out to Capital Projects Fund

Question

Quizplus · Accepted Answer

The transfer of funds from the general fund to the capital projects fund is not considered an expenditure. Instead, it is classified as an "Other Financing Use" in the general fund, meaning that it represents a transfer of resources to another fund. The correct account to be debited in the general fund on September 15 would be "Other Financing Uses-Transfer Out to Capital Projects Fund."

The General Fund of Battle Creek Budgeted a Transfer to Its