10528 ENTRY NO. 28 [CLAIM IS FILED IN SETTLEMENT OF A CONDEMNATION DEPOSIT]
(Revised 5/87)
Nature of Transaction:
A claim is filed against the agency's fund and appropriation in settlement of a condemnation proceeding for acquisition of real property.
Journal Entry for General Ledger Accounts:
Debit:
1400 Due from Other Funds or Appropriations a/
2310 Land b/
2331 Improvements Other than Buildings c/
5390 Other Reserves a/
9000 Appropriation Expenditures d/
Credit:
2730 Deposits in Condemnation Proceedings a/
3020 Claims Filed e/
5200 Investment in General Fixed Assets e/
a/ amount deposited in the Condemnation Deposits Fund for the case now being settled.
b/ amount of settlement for land acquired.
c/ amount of settlement for improvements acquired.
d/ excess of amount of settlement over amount of the deposit (if amount of judgment is less than the amount of the deposit, this entry will be the reverse of that shown).
e/ amount of claim filed settlement (b+c).
Source:
Document:
Claim Schedule
Register:
Claims Filed Register
Explanation:
In settlement of some condemnation proceedings payment is made to the grantor from the agency's fund and appropriation prior to return of the deposit from the Condemnation Deposits Fund. In these cases, at the time of filing the claim the State Controller's Officer is requested to transfer the amount of the deposit back to the agency's fund and appropriation, and the amount of the deposit is transferred from Account No. 2730 to Account No. 1400. At this time the actual cost of the fixed assets are recorded in the General Ledger fixed asset accounts. Since the amount deposited was recorded as an appropriation expenditure, only the difference between the amount of the deposit and the amount of the final settlement now is recorded as an appropriation expenditure or abatement.
If a claim for settlement has been filed on or before June 30 but the deposit has not been returned by that date, the amount to be returned will be reported to the State Controller's Office as an abatement accrual.
