Question

The Debt Service Fund received a cash transfer of $25,000 from the Capital Projects Fund after a capital project was completed. The entry to record this transaction in the Debt Service Fund is:

Answer 1

Answer:

The entry is as indicated below

Explanation:

The entries are to be made as follows

S. No |     Account Title and Explanation         |  Debit ($)    |  Credit ($)

1         |        Cash transfer from the                   |    25000    |

         |        Capital Fund                                    |                   |                                            ____________________________________________________________

         |        Debt Service Fund                          |                   |    25000