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Fund Balance

This portion of the book will provide details related to the fund balance on the balance sheet.

Indiana University cheerleaders pump up the crowd during Traditions and Spirit of IU in Memorial Stadium at IU Bloomington.
Indiana University cheerleaders pump up the crowd during Traditions and Spirit of IU in Memorial Stadium at IU Bloomington.

The fund balance (equity) is essentially the difference between assets and liabilities. In general, it is the balance remaining after assets have been used to satisfy outstanding liabilities. At Indiana University, very little activity occurs directly within fund balance (equity) accounts and the balance is comprised of the prior existing fund balance (equity) and the period’s net income.The fund balance is made up of three classifications: net investment in capital assets, restricted funds, and unrestricted funds. In general, no entries should be posted directly to fund balance accounts.

License

Accounting for Liabilities and Fund Balance Copyright © by The Trustees of Indiana University. All Rights Reserved.

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