When the entry recording the budget is reversed at year-end, the Budgetary Fund Balance Reserved for Encumbrances account is debited.

Name: When the entry recording the budget is reversed at year-end, the Budgetary Fund Balance Reserved for Encumbrances account is debited.
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The Budgetary Fund Balance Reserved for Encumbrances account is credited, not debited, when reversing the entry recording the budget at year-end to close out the budgetary accounts and adjust the fund balance.

When the Entry Recording the Budget Is Reversed at Year-End