Question

The Town of Willingdon adopted the following General Fund budget for the fiscal year beginning July 1: Estimated revenues: Taxes Intergovernmental revenues Licenses and permits Fines and forfeits Miscel1aneous revenues $15,600,000 850,000 390,000 120,000 70,000 $17,030,000 Total estimated revenues Appropriations: eneral government Public safety Public works Health and welfare Miscellaneous ş 8,150,000 6,060,000 1,610,000 1,010,000 130,000 Total appropriations $16,960,000

Answer 1

Solution :

General entry to record the budget made in the beginning of the fiscal year:

Date	General ledger	Debit	Credit
July 01	Estimated Revenue	17,030,000
	Appropriations		16,960,000
	Budgetary Fund balance (balancing figure)		70,000

The estimated revenue is sufficient to meet the expected appropriations.

Revenue ledger:

Town of Willingdon
Revenue Ledger
Year	Account Title	Estimated revenue Dr.(Cr.)	estimated revenue Cr.(Dr.)	balance Dr.(Cr.)
July 01	Tax	15,600,000		15,600,000
July 01	Intergovernmental revenue	850,000		16,450,000
July 01	License and permits	390,000		16,840,000
July 01	Fines and Forfeits	120,000		16,960,000
July 01	Miscellaneous Revenues	70,000		17,030,000

Note : Each step of balance amount shows the added cumulative figure.

Appropriation ledger:

Town of Willingdon
Appropriation Ledger
Account/Description	Encumbrances Increase Dr.	Encumbrances Decrease Cr.	Encumbrances Balance Dr.(Cr.)	Expenditure Dr.(Cr.)	Expenditure balance Dr.(Cr.)	Appropriations Cr.(Dr.)	Appropriations Balance Cr.(Dr.)
General Government						8,150,000	8,150,000
Public Safety						6,060,000	14,210,000
Public Works						1,610,000	15,820,000
Health and Welfare						1,010,000	16,830,000
Miscellaneous						130,000	16,960,000

Note to Appropriation ledger:

1. Each step of balance amount shows the added cumulative figure of appropriations.

2.There is no expenditure done in the beginning of the year therefore no scope of  showning expenditure.

3.There is no encumbrances increase or decrease , Encumbrances are the liability or burden to be settled in coming fiscal year.