1. Government Accounting Equation Fund Balance/Net Assets
12/1/2018
Government Accounting Equation
Assets
(Debit) -
Liabilities
(Credit) =
Fund Balance/Net Assets
(Credit)*
Asset Accounts
Examples:
Cash
Receivables
Investments
Prepaid Items*
Inventory*
Liability Accounts
Examples:
Accounts Payable
Accrued Liabilities
Fund Balance/Net Assets Accounts
Examples:
Reserved Fund Balance
Unreserved Fund Balance
Operating Statement Accounts
Examples:
Credit Balance
Revenues
Other Financing Sources
Debit Balance
Expenditures
Other Financing Uses
Budgetary Accounts
Examples:
Debit
Estimated Revenues
Estimated Other Financing Sources
Encumbrances
Credit
Appropriations
Estimated Other Financing Uses
The items in blue show the difference for gov’t accounting. We have fund equity accounts like “Reserved for Fund Balance and Unreserved Fund Balance plus we have to keep track of our budgets so we have these Budgetary Accounts. For our Operating Statement Accounts that fall under Fund Equity, we have additional accounts called “Other Financing Sources and Other Financing Uses”.
*Fund Balance for Governmental Funds
Net Assets for Proprietary/Fiduciary Funds
** If material in amount