The general ledger journal entry in the General Fund to record actual expenditures and reversal of the associated encumbrance would include:

Question

Quizplus · Accepted Answer

When actual expenditures are recorded in the General Fund, the associated encumbrance is reversed through a credit to the Encumbrance Control account. Therefore, the correct choice is a credit to Encumbrance Control. The other options (debit to Encumbrance Control, debit to Accounts payable, and credit to Budgetary Fund Balance-Reserve for Encumbrances) are not necessary to record the actual expenditures and reversal of encumbrance.

The General Ledger Journal Entry in the General Fund to Record