The general fund is a government’s basic operating fund and accounts for everything not accounted for in another fund. Special revenue funds are intended to be used to report specific revenue sources that are limited to being used for a particular purpose, such as transportation aid.

What is general fund expenditure?

Expenditures are grouped into several different categories. The main categories are Personnel Services, Materials & Services, Grants, Operating Transfer Out, Capital, and Contingency. As a service organization, especially in the General Fund, Personnel Services (employees) comprises 53 percent of all expenditures.

What is general fund in NPO?

The Non-profit organizations do not use the term Capital. Instead, General Fund or Accumulated Fund appears on the Balance Sheet. The NPO might also create a special fund, such as prize fund or match fund. The purpose of which is to meet the expenses related to the purpose for which it is created.

Is General Fund a Income?

General fund refers to revenues accruing to the state from taxes, fees, interest earnings, and other sources which can be used for the general operation of state government. General fund revenues are not specifically required in statute or in the constitution to support particular programs or agencies.

What should be included in a general fund balance sheet?

The incomes on the amount which is invested from these funds accrue to the fund alone and not the income and expenditure account. Preparation of a balance sheet starts with the general fund. You have to add the respective surplus or deficit in the amount. Further, add life membership fees or legacies at this stage.

What do special funds and general funds account for?

Where other funds are specified for certain purposes, general funds account for every government function that isn’t categorized. Special Revenue Fund: As the name suggests, special revenue funds are used to account for specific government activities supported by tax generated from specific sources.

What should be included in an income and expenditure account?

Include all items of revenue receipts and expenses, on the respective side of the account. Ensure that no items of capital incomes and expenses are included in this account. Also, adjustment for amounts prepaid and outstanding, with respect to each item will have to be made.

How are governmental funds recorded on a balance sheet?

All governmental funds are recorded and reported as per a modified accrual basis of accounting. This means that tax revenue is recorded when it becomes measurable and available, and expenses are recorded whenever the liability for it is incurred. The balance sheet which constitutes of the statement of fund balance has the following line items: