The budgeted excess of estimated revenues over appropriations is recorded as a credit to which account?

• A. Budgetary Fund Balance
• B. Revenues
• C. Appropriations
• D. Fund Balance

Answer: (A)

In government budgeting, the difference between estimated revenues and appropriations is tracked in a budgetary control account to reflect the status of the budget rather than the entity’s financial position. When estimated revenues exceed appropriations, that creates a budgetary surplus, which is recorded as a credit to Budgetary Fund Balance. This account represents the available, budgeted resources that are not yet required to fund appropriations and can be carried forward or reallocated in future budgets. It isn’t an entry for actual revenues or for legal spending limits, and it isn’t the general fund balance that shows the entity’s financial position. So the surplus is properly shown by crediting Budgetary Fund Balance, signaling extra budgeted resources that can be used later.