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state seal 85.42
Expenditures, Expenses, and Cash Disbursements - Illustrative Entries

85.42.10

May 1, 1999

These entries are for illustrative purposes
  The entries in this section illustrate the recording of expenditures/expenses and cash disbursements in the accounting records. These entries are for illustrative purposes only and should not be considered all inclusive. Entries posted to GL Code Series 71XX "In-Process" in treasury and treasury trust accounts also require an entry from the Office of State Treasurer (OST) as illustrated below to clear the In-Process GL Codes.

  Dr. Cr.
In-Process (71XX) xxx  
  Current Treasury Cash Activity (OST Only) (4310)   xxx

85.42.20

June 1, 2011

Encumbrances
85.42.20.a

To record the establishment of encumbrances or increases to existing encumbrances for budgeted accounts. Refer to Subsection 85.30.10.

  Dr. Cr.
Encumbrances (6410) xxx  
  Reserved for Encumbrances (9510)   xxx

85.42.20.b

To record encumbrance liquidations for budgeted accounts. Refer to Subsections 85.30.10 and 85.32.40.e.

  Dr. Cr.
Reserved for Encumbrances (9510) xxx  
  Encumbrances (6410)   xxx

85.42.30

May 1, 1999

Expenditure/expense disbursements
 

To record expenditure/expense disbursements for goods and services received. Refer to Subsection 85.36.50.

  Dr. Cr.
Cash Expenditure/Expense (6510) (with appropriate subobject) xxx  
  Cash in Bank (1110) or
Warrants/ACH Payments In-Process (7120)
  xxx

85.42.40

July 1, 2011

Recording payroll
85.42.40.a

To record payroll expenditures/expenses. Refer to Subsection 85.34.10.

  Dr. Cr.
Cash Expenditure/Expense (6510) (with appropriate subobject) xxx  
  Cash in Bank (1110) or
Journal Vouchers In-Process (7140)
  xxx

85.42.40.b

To record the receipt of cash in the payroll revolving account and the establishment of the payroll liabilities for agencies using the state's Human Resource Management System (HRMS).

  Dr. Cr.
Journal Vouchers In-Process (7140) xxx
Accrued Salaries and Fringe Benefits Payable (5124)
Employee Insurance Deductions Payable (5181)
Industrial Insurance and Medical Aid Deductions Payable (5187)
Garnishment Deductions Payable (5189)
Other Liabilities (5199)
  xxx
xxx

xxx
xxx
xxx

85.42.40.c

To record subsequent liquidation of payroll and related liabilities in the payroll revolving account.

  Dr. Cr.
Accrued Salaries and Fringe Benefits Payable (5124)
Employee Insurance Deductions Payable (5181)
Industrial Insurance and Medical Aid Deductions Payable (5187)
Garnishment Deductions Payable (5189)
Other Liabilities (5199)
xxx
xxx
xxx
xxx
xxx
 
  In-Process (71XX)   xxx

85.42.50

May 1, 1999

Recording shared leave
85.42.50.a

To record transfer of shared leave between employees within an agency and within the same account. Refer to Subsection 85.34.20.

  Dr. Cr.
Cash Expenditures/Expenses (6510) (Subobject BT, BU and BV, as applicable) xxx  
  Cash Expenditures/Expenses (6510) (Subobject BW)   xxx

85.42.50.b

To record transfer of shared leave between employees of different agencies and/or accounts.

Donor's Operating Account:
  Dr. Cr.
Cash Expenditures/Expenses (6510) (Subobject BT, BU and BV, as applicable) xxx  
  Cash in Bank (1110) or
In-Process (71XX)
  xxx

Donee's Operating Account:
  Dr. Cr.
Cash in Bank (1110) or
In-Process (71XX)
xxx  
  Cash Expenditures/Expenses (6510) (Subobject BW)   xxx

85.42.50.c

To record the payroll for an employee using donated shared leave.

  Dr. Cr.
Cash Expenditures/Expenses (6510) (Object A, B) xxx  
  Cash in Bank (1110) or
In-Process (71XX)
  xxx

85.42.50.d

To record reversion of unused shared leave when employees are within the same agency and account.

  Dr. Cr.
Cash Expenditures/Expenses (6510) (Subobject BW) xxx  
  Cash Expenditures/Expenses (6510) (Subobject BT, BU and BV, as applicable)   xxx

85.42.50.e

To record reversion of unused shared leave when employees are from different agencies and/or accounts.

Donor's Operating Account:
  Dr. Cr.
Cash in Bank (1110) or
In-Process (71XX)
xxx  
  Cash Expenditures/Expenses (6510) (Subobject BT, BU and BV, as applicable)   xxx

Donee's Operating Account:
  Dr. Cr.
Cash Expenditures/Expenses (6510) (Subobject BW) xxx  
  Cash in Bank (1110) or
In-Process (71XX)
  xxx

85.42.60

May 1, 1999

Amounts due deceased employees
85.42.60.a

To record amounts owed to deceased employees. Refer to Subsection 85.34.30.

  Dr. Cr.
Cash Expenditures/Expenses (6510) (with appropriate subobjects) xxx  
  Due to Deceased Employees’ Estates (5145)   xxx

85.42.60.b

To record the liquidation of the liability when the funds are released for payment.

  Dr. Cr.
Due to Deceased Employees’ Estates (5145) xxx  
  Cash in Bank (1110) or
Warrants/ACH Payments In-Process (7120)
  xxx

85.42.70

May 1, 1999

Salary overpayment recoveries
85.42.70.a

To record the recovery of net pay and related deductions, or employer costs, for a salary overpayment. Refer to Subsection 85.34.40.c.

  Dr. Cr.
Receipts In-Process (7110) xxx  
  Cash Expenditures/Expenses (6510) (Subobject A, B or N series)   xxx

85.42.70.b

To record the reduction in full time equivalents (FTEs) for any excess hours associated with a salary recovery. Refer to Subsection 85.34.40.c.

  Dr. Cr.
Statistical Clearing Account (0998) xxx  
  Actual FTEs (0120)   xxx

85.42.80

July 1, 2012

Cancellations of non-deliverable, SOL, and lost or destroyed warrants
 

To record cancellations of non-deliverable warrants, warrants statutorily canceled by the Office of the State Treasurer, and lost or destroyed warrants. Refer to Section 85.38.

  Dr. Cr.
Warrant Cancellations In-Process (7130) xxx  
  Liability for Canceled Warrants/Checks (5194)   xxx

85.42.85

July 1, 2012

Cancellations of warrants issued in error

 

To record cancellations of warrants issued in error. Refer to Subsection 85.38.10.

  Dr. Cr.
Warrant Cancellations In-Process (7130) xxx  
 

Cash Expenditures/Expenses (6510) or
Cash Revenues (3210)

  xxx

85.42.90

July 1, 2012

Re-issuance of canceled warrants
 

To record re-issuance of warrants previously canceled due to warrant being non-deliverable, statutorily canceled by the Office of the State Treasurer, or lost or destroyed. Refer to Section 85.38.

  Dr. Cr.
Liability for Canceled Warrants/Checks (5194) xxx  
  Warrants/ACH Payments In-Process (7120)   xxx

85.42.95

May 1, 1999

Forged endorsement
85.42.95.a To record the bank credit for the redemption of forged warrants. Refer to Subsection 85.38.30.a
.
  Dr. Cr.
Receipts In-Process (7110) xxx  
  Other Liabilities (5199)   xxx

85.42.95.b

To record re-issuance of forged warrants. Refer to Subsection 85.38.30.a.

  Dr. Cr.
Other Liabilities (5199) xxx  
  Warrants/ACH Payments In-Process (7120)   xxx


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