When the budget is adopted and Estimated Revenues exceed Appropriations, the excess is recorded as:

• A. Debited to Budgetary Fund Balance
• B. Transferred to a Reserve Fund
• C. Recognized as Revenue in the current period
• D. Credited to Budgetary Fund Balance

Answer: (D)

When a government adopts its budget, budgetary accounts track estimated revenues and appropriations. If the plan shows more estimated revenues than appropriations, that excess isn’t actual revenue yet; it represents resources that exist but have not been appropriated. In the budgetary framework this surplus is recorded as an increase to the budgetary fund balance, not as current-period revenue. That’s why the entry credits Budgetary Fund Balance for the excess and debits the full estimated revenues (to bring the budget into balance and reflect the resources available for future appropriation). The result is an increased Budgetary Fund Balance.

So, the excess is recorded as a credit to Budgetary Fund Balance. The other options don’t fit because the excess isn’t actual revenue, isn’t automatically moved to a reserve fund, and isn’t recorded as revenue in the current period.