Budgetary accounts

Accounts used in governmental accounting to record the budget amounts but not the actual amount. For example, at the beginning of the accounting period, the planned amount of tax revenue, revenue from license, and inflows from fines would be recorded as one amount in the budgetary account for estimated revenue of a city. During the accounting period, no other entries would be made to the budgetary account for esti- mated or real revenue. Then the end of the accounting period, the budget entry would be reversed. Each budgetary account has subsidiary accounts associated with it. The estimated revenues budgetary account may have subsidiary accounts that identify the individual sources of the revenues by type, such as fines, licenses, property taxes etc. The budget amount is entered in the subsidiary accounts with a debit. The actual cash collections are entered as a credit in the subsidiary accounts, with the debit for the total to cash 

 

   Related Questions in Managerial Accounting

  • Q : Partnership from Accounting point of

    Describe the status of partnership from an accounting point of view? Answer: From an accounting point of view, partnership is a separate business entity. From legal

  • Q : Define Opportunity Cost Opportunity

    Opportunity Cost: The value of the substitutes foregone by approving a particular strategy or utilizing resources in a particular manner. Al so termed as Alternative Cost or Economic Cost.

  • Q : What is Activity Analysis Activity

    Activity Analysis: The identification and explanation of activities in an association. The activity analysis comprises determining what activities are completed within a department and how many people execute the activities, how much

  • Q : Allocating resources in decision making

    Write down a short note on the Allocating resources in decision making process?

  • Q : What are the steps involved in Process

    ACCOUNTING PROCESS:  The process of Accounting involves the following steps:

    Q : Influence of managers

    Write down a short note on the influence of manager’s behavior in management accounting information?

  • Q : Evaluate the strategic options Identify

    Identify and evaluate the strategic options in brief?

  • Q : Number of Partners in Partnership What

    What is the maximum and minimum number of partners in each and every type of partnership? Answer: There must be at least two persons to build a Partnership. The maxi

  • Q : Main working areas of the Marketing

    Write a short note on the main working areas of the Marketing department?

  • Q : Define Fixed Cost Fixed Cost: The cost

    Fixed Cost: The cost which does not differ in the short term with the volume of action. Fixed cost information is helpful for cost savings by regulating existing capacity, or by removing idle facilities. Also termed as Non-Variable Cost or the Constan

©TutorsGlobe All rights reserved 2022-2023.