When plant assets acquired by a governmental entity's general fund were received, an appropriate journal entry was made in the voluntarily maintained general capital assets account group. What ledger account is debited in the general fund?

Question

Quizplus · Accepted Answer

When a governmental entity's general fund acquires plant assets, the appropriate ledger account to debit is "Expenditures." This is because, in governmental accounting, the acquisition of capital assets through the general fund is typically recorded as an expenditure rather than capitalizing the asset in the fund's accounts. The capitalization of the asset occurs in the general capital assets account group, not in the general fund itself.

When Plant Assets Acquired by a Governmental Entity's General Fund