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40.30.26 Negative Cash Balances

40.30.26 Negative Cash Balances

If a fund experiences a negative cash balance at month end, that fund is to be charged interest expense using account 5110060.

Colleges must determine a “significance” level and then charge or credit interest to funds only with significant positive or negative cash balances. Funds with positive cash balances should receive the interest income.

Illustrative Entries

Bank Interest & Charges

Fund Class Dept Method Acct DR Acct CR Amount ($)
148 0xx ddddd Journal Entry 5110060 1000199 50.00
570 265 ddddd Journal Entry 5110060 1000199 50.00
790 285 ddddd Journal Entry 1000199 4120010 100.00

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Last Modified: 6/5/23, 2:01 PM

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