When a purchase order is issued under a Capital Projects fund,how should the transaction be recorded?

Question

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When a purchase order is issued under a Capital Projects fund, the transaction should be recorded by debiting Encumbrances Control and crediting Budgetary Fund Balance -- Reserve for Encumbrances. This is because the encumbrance is an estimate of the amount set aside for an obligation in the future, and it is recorded as a reservation of a portion of the Fund Balance. Once the actual expenditure is made, the encumbrance is relieved and the actual expenditure is recorded by debiting Expenditures and crediting Budgetary Fund Balance -- Reserve for Encumbrances.

When a Purchase Order Is Issued Under a Capital Projects