Chapter 4 - Accounting for the general and special revenue funds. In this chapter students will be able to: Apply the modified accrual basis of accounting in the recording of typical transactions of a general and special revenue fund, prepare closing entries and classify fund balances, prepare the fund-basis financial statements of a general and special revenue fund. | Essentials of Accounting for Governmental and Not-for-Profit Organizations Chapter 4 Accounting for the General and Special Revenue Funds Copyright © 2015 McGraw-Hill Education. All rights reserved. Chapter 4 – Learning objectives Apply the modified accrual basis of accounting in the recording of typical transactions of a General and special revenue fund Prepare closing entries and classify fund balances Prepare the fund-basis financial statements of a General and special revenue fund Review: Fund Accounting The purpose of fund accounting is to segregate those financial resources that have constraints or limitations on their use so that the government may demonstrate compliance with those limitations. The General Fund reports those resources not subject to such restrictions. The General Fund is used to account for and report all financial resources not accounted for and reported in another fund. GASB 54 – Fund Definitions General Fund Purpose: General fund Many resources have no limitations on their use and do not require segregation. The General Fund accounts for any resources not reported in one of the other (limited-use) funds. Every general purpose government will have one, and only one, General Fund. Account for and report the proceeds of specific revenue sources that are restricted or committed (does not include assigned) to expenditure for specified purpose other than debt service or capital projects. GASB – Fund Definitions Special Revenue Funds Special Revenue Funds - Purpose Special revenue funds are an example of a fund established because of constraints place on the use of government resources. Note, however, that special revenue funds are not used if the resources are required to be used to acquire capital assets (capital projects funds) or for the payment of interest and principal on long-term debt (debt service funds). Special revenue funds received particular guidance from GASB: Although other resources may supplement a special revenue fund, . | Essentials of Accounting for Governmental and Not-for-Profit Organizations Chapter 4 Accounting for the General and Special Revenue Funds Copyright © 2015 McGraw-Hill Education. All rights reserved. Chapter 4 – Learning objectives Apply the modified accrual basis of accounting in the recording of typical transactions of a General and special revenue fund Prepare closing entries and classify fund balances Prepare the fund-basis financial statements of a General and special revenue fund Review: Fund Accounting The purpose of fund accounting is to segregate those financial resources that have constraints or limitations on their use so that the government may demonstrate compliance with those limitations. The General Fund reports those resources not subject to such restrictions. The General Fund is used to account for and report all financial resources not accounted for and reported in another fund. GASB 54 – Fund Definitions General Fund Purpose: General fund Many resources have no .
