10615     ENTRY NO. A–13 [CASH IN STATE TREASURY IS TRANSFERRED TO FUND BALANCE–CLEARING ACCOUNT (FOR FUNDS NOT ACCOUNTED ENTIRELY BY ONE AGENCY)]
(Renumbered 5/95)

Nature of Transaction:
Cash in State Treasury account balance (for funds not accounted entirely by one agency) is transferred to the Fund Balance—Clearing Account to facilitate the closing of nominal accounts at June 30.

Journal Entry for General Ledger Accounts:
Debit:
1140 Cash in State Treasury
Credit:
5570 Fund Balance—Clearing Account

Source:
Balance of Account No. 1140 at June 30. (In most cases, the account will have a credit balance.  Should it have a debit balance, the above entry would be reversed.)

Explanation:
For funds that are not accounted entirely by one agency, Account No. 1140, Cash in State Treasury, does not show the cash balance in the State Treasury to the credit of a particular fund. Instead, Account No. 1140 shows the net agency remittances to (debit balance) or disbursements from (credit balance) the particular fund in State Treasury. By transferring the balance of Account No. 1140 and applying closing entries C–1 and C–2 to Account No. 5570, Fund Balance—Clearing Account, Account No. 5570 will show each agency's shared equity (net assets or liabilities) of particular funds in the State Treasury not accounted entirely by our agency.