The journal entry to close the Appropriations ledger account of a governmental entity's general fund includes credits to the Expenditures and Encumbrances (if used) accounts, and either a debit or a credit to the Unreserved and Undesignated Fund Balance account.

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The journal entry to close the Appropriations ledger account typically involves a debit to the Appropriations account and a credit to the Fund Balance or Budgetary Fund Balance account, not to the Expenditures and Encumbrances accounts.

The Journal Entry to Close the Appropriations Ledger Account of a Governmental