The journal entry to record a purchase order in the General Fund would be a debit to encumbrances control account and credit the Budgetary Fund Balance-Reserve for Encumbrances account.

Question

Quizplus · Accepted Answer

This is the correct entry to record a purchase order in the General Fund. The encumbrances control account is debited to reflect the commitment of funds for the purchase, and the Budgetary Fund Balance-Reserve for Encumbrances account is credited to indicate that a portion of the budget has been reserved to cover the expected expenditure.

The Journal Entry to Record a Purchase Order in the General