Question

The General Fund lends cash at the beginning of the year to an Enterprise Fund, expecting to be repaid before the end of the year. What account should be debited in the General Fund

Answer 1

due from enterprise fund

Step-by-step explanation:

In the given scenario where General Fund lends cash at the beginning of the year to an Enterprise Fund expecting to be repaid before the end of the year, the General fund will need to record a debit to its books.

As the enterprise fund is making repayment to the account credits will reduce the debit figure until it is zeroed off.

This is like an account receivable for the enterprise fund.

So a debit will be passed to due from enterprise fund.