1

Payroll and Annual Leave

Transactions

Assume this is an annual appropriation. The funding for the annual leave will not be available until the employees take 

their earned annual leave in some future date. 
2

Year 1 

Description xx-01-xxxx (Unexpired Annual Appropriation)

1. Appropriation is received in an annual fund. Budgetary

4119 Appropriation realized 300

4450 Unapportionment 300

4450 Unapportionment 300

4510 Apportionment 300

4510 Apportionment 300

4610 Allotment 300

Proprietary

1010 FBWT 300

3101 Unexpended appropriation – App Received 300

A104

A116

A120

2A. To record a payroll Budgetary

4610 Allotment 100

4902 Delivered Orders – Oblig, pd 100

Proprietary

6100 Operating Expense 100

1010 FBWT 100

3107 Unexpended App – Used 100

5700 Appropriation Used 100

B102

B134

2B. To record annual leave

(Note: assume annual leave is unfunded until the 

employee takes the leave in the future date)

Budgetary

None

Proprietary

6800 Unfunded Expenses 20

2220 Unfunded Leave 20

B324

3A. Assume the year end fell on the 8th day of the 

next pay period. Accrued payroll of $70 was 

estimated.

Budgetary

4610 Allotment 70

4901 Delivered Orders – Oblig, unpd 70

Proprietary

6100 Operating Expense 70

2210 Accrued Funded Payroll and Leave 70

3107 Unexpended App – Used 70

5700 Appropriation Used 70

D402

B134
3

3B. At the end of the year $16 of annual leave was 

recorded

Budgetary

None

Proprietary

6800 Unfunded Expenses 16

2220 Unfunded Leave 16

B324
4

Year 1

Pre-closing Trial Balance

Budgetary

4119 Appropriation realized 300

4610 Allotment Realized 130

4901 Delivered Orders – Obligations, unpd 70

4902 Delivered Orders – Obligations, pd 100

300 300

Proprietary

1010 FBWT 200

2210 Accrued funded Payroll 70

2220 Unfunded Leave 36

3101 Unexpended appropriation – App Received 300

3107 Unexpended App – Used 170

5700 Appropriation Used 170

6100 Operating Expense 170

6800 Unfunded Expenses 36 . 

576 576

Net Cost

4. Gross Costs with Public

6100 Operating Expense 170

6800 Unfunded Expenses 36

6. Net Cost with Public 206

Closing Entries

Budgetary

4201 Total actual resources collected 300

4119 Appropriation realized 300

4902 Delivered Orders – Obligations, pd 100

4201 Total actual resources collected 100

4610 Allotment realized 200

4650 Allotment – Expired authority 200

Proprietary

5700 Appropriation Used 170

3310 Cumulative results 170

3310 Cumulative results 206

6100 Operating Expense 170

6800 Unfunded Expenses 36

3101 Unexpended appropriation – App Received 300

3107 Unexpended App – Used 170

3100 Unexpended Appr – Cum 130

Post – Closing Trial Balance

Budgetary

4201 Total actual resources coll 200

4650 Allotment – Expired authority 130

4901 Delivered Orders – Obligations, unpd 70

Proprietary

1010 FBWT 200

2210 Accrued funded Payroll 70

2220 Unfunded Leave 36

3100 Unexpended appropriation – Cum 130

3310 Cumulative Results 36
5

YEAR 1

133 Reports on budget Execution and Budgetary Resources

BUDGETARY RESOURCES

1. Budget authority

A. Appropriation (4119) 300

2. Unobligated balance

A. Brought Forward (41XX, 4201,4908B) -0-

3. Offsetting Collections

A. Collected -0-

7. Total Budgetary Resources 300

STATUS OF BUDGETARY RESOURCES

8. Obligations incurred:

A. Exempt from Apportionment (4902E, 4901E-B) 170

C. Subtotal

9. Balances Currently Available (4610) 130

11. Total Status of budgetary resources 300

RELATIONSHIP OF OBLIGATIONS TO OUTLAYS

14. Obligated Balance, Net, End of Period

D. Accounts Payable 70

15.Outlays

A. Disbursements (+) (4902E,) 100

C. . Subtotal (calc 15A..15B) 100

17. Net Outlays 100
6

YEAR 1

STATEMENT OF FINANCING

1. Obligations incurred (4902E, 4901E-B) 170

3. Obligations Net of Offsetting Collections and Recoveries 170

11. Total Resources Used to Finance Activities 170

18. Total Resources Used to Finance the Net Cost of Operations 0

19. increase in annual leave liability 36

30. Net Cost of operations 206

YEAR 1

Balance Sheet

Assets

1010 FBWT 200

Liabilities

2210 Accrued funded Payroll 70

2220 Unfunded Leave 36

Equity

Unexpended appropriation 130

Cumulative results 36
7

YEAR 2

XX-01-XXXX (Expired Appropriation) XX-02-XXXX (Unexpired Appropriation)

1. To reverse the accrued 

annual leave in the expired 

account and to reestablish 

annual leave in the new 

appropriation account.

Budgetary

None

Proprietary

2220 Unfunded Leave 36

6800 Unfunded Expenses 36

Budgetary

None

Proprietary

6800 Unfunded Expenses 36

2220 Unfunded Leave 36

B324R

B324

2. Appropriation is received in an 

annual fund.

Budgetary

None 

Proprietary

None

Budgetary

4119 Appropriation realized 200

4450 unapportionment 200

4450 unapportionment 200

4510 Apportionment 200

4510 Apportionment 200

4610 Allotment 200

Proprietary

1010 FBWT 200

3101 Unexp App – App Received 200

A104

A116

A120

A104

3A. To record payroll payment of 

$100. Funding for the payroll in 

the new year comes from both 

expired and unexpired account.

(Assume payroll is $10/per day)

• $80 from the expired app 

(8 days)

• $20 from current app (2 

days)

It was discovered that the actual 

payroll amount was $10 more than 

the estimated amount recorded in

the prior year. Upward 

adjustment was made to correctly 

reflect the payroll amount.

Budgetary

4650 Allotment – Expired Authority 10

4981

1 Upward Adj of PY 10

4901 Delivered Orders – Oblig,unpd 80

4902 Delivered Orders – Oblig,pd 80

Proprietary

2210 Accrue Funded Payroll and Leave 70

6100 Operating expense 10

1010 FBWT 80

3107 Unexpended App – Used 10

5700 Appropriation Used 10

D402R

B102

D114

B302

B110

Budgetary

4610 Allotment 20

4902 Delivered Orders – Oblig, pd 20

Proprietary

6100 Operating Expense 20

1010 FBWT 20

3107 Unexpended App – Used 20

5700 Appropriation Used 20

B102

B134

 

1

A11, section 130.6
8

XX-01-XXXX (Expired Appropriation) XX-02-XXXX (Unexpired Appropriation)

3B. Unfunded Annual leave of $4 

is recorded. ($16 of the unfunded 

annual leave was accrued at the 

year end, see entry #1)

Budgetary

None

Proprietary

6800 Unfunded Expenses 4

2220 Unfunded Leave 4

4. To record payroll payment of 

$100

4a) To record payroll for hours 

worked during the pay period

4b) To record payroll for annual 

leave taken during the pay period. 

(entries are reflected to show 

annual leave from unfunded to 

funded status)

4c) To record annual leave earned 

during the pay period.

Budgetary

None

Proprietary

None

4A.

Budgetary

4610 Allotment 90

4902 Delivered Orders – Oblig, pd 90

Proprietary

6100 Operating Expense 90

1010 FBWT 90

3107 Unexpended App – Used 90

5700 Appropriation Used 90

4B.

Budgetary

4610 Allotment 10

4902 Delivered Orders – Oblig, pd 10

Proprietary

2220 Unfunded Leave 10

6800 Unfunded Expense 10

6100 Operating expense 10

2210 Accrued Funded Payroll and Leave 10

2210 Accrued Funded Payroll and Leave 10

1010 FBWT 10

3107 Unexpended App – Used 10

5700 Appropriation Used 10

4C.

Budgetary

None

Proprietary

6800 Unfunded Expenses 20

2220 Unfunded Leave 20

B102

B134

B102

B324R

B102

B110

 

 “ . . . . . These unobligated balances are now expired budgetary resources. They are available for obligation only for valid upward adjustments of obligations that were 

properly incurred against the account during the expired phase.”
9

XX-01-XXXX (Expired Appropriation) XX-02-XXXX (Unexpired Appropriation)

Pre-closing trial balance

Budgetary

4201 Total actual resources received 200

4650 Allotment – Expired Authority 120

4981 Upward adjustment of PY Deliverd 10

4901 Delivered Ord – Oblig, unpd 10

4902 Delivered Orders – Obligations, unpd 80

210 210

Proprietary

1010 FBWT 120

3100 Unexpended App – Cum 130

3107 Unexpended App – Used 10

3310 Cumulative Results 36

5700 Appropriation Used 10

6100 Operating Expense 10

6800 Unfunded Expense 36

176 176

Pre-closing trial balance

Budgetary

4119 Appropriation realized 200

4610 Allotment Realized 80

4902 Delivered Orders – Obligations, pd 120

200 200

Proprietary

1010 FBWT 80

2220 Unfunded Leave 50

3101 Unexpended appropriation – App Received 200

3107 Unexpended App – Used 120

5700 Appropriation Used 120

6100 Operating Expense 120

6800 Unfunded Expenses 50 0 

370 370

Net Cost xx01xxxx xx02xxxx Cons

4. Gross Costs with Public

6100 operating Expense 10 120 130

6800 Unfunded Expenses (36) 50 14

6. Net Cost with Public (26) 170 144

Balance Sheet

Xx01xxxx xx02xxxx Cons

Assets

FBWT 120 80 200

Liabilities

Unfunded Leave 50 50

Equity

Unexp appropriation 120 80 200

Cumulative results 0 (50) (50)

Closing Entries

Budgetary

4902 Delivered Orders – Obligations, pd 80

4201 Total actual resources collected 80

4881 Upward Adj of PY 10

4801 Undelivered Orders – Oblig, Unpd 10

Closing Entries

Budgetary

4201 Total actual resources collected 200

4119 Appropriation realized 200

4902 Delivered Orders – Obligations, pd 130

4201 Total actual resources collected 130

4610 Allotment realized 80

4650 Allotment – Expired authority 80
10

Proprietary

5700 Appropriation Used 10

6800 Unfunded expense 36

3310 Cumulative results 46

3310 Cumulative results 10

6100 Operating Expense 10

3100 Unexpended Appr – Cum 10

3107 Unexpended App – Used 10

Proprietary

5700 Appropriation Used 120

3310 Cumulative results 120

3310 Cumulative results 170

6100 Operating Expense 120

6800 Unfunded Expenses 50

3101 Unexpended appropriation – App Received 200

3107 Unexpended App – Used 120

3100 Unexpended Appr – Cum 80
11

YEAR 2

133 Reports on budget Execution and Budgetary Resources

BUDGETARY RESOURCES xx01xxxx xx02xxxx Combined

1. Budget authority

A. Appropriation (4119) 0 200 200

2. Unobligated balance

A. Brought Forward (4201,4901B) 130 130

7. Total Budgetary Resources 130 200 330

STATUS OF BUDGETARY RESOURCES

8. Obligations incurred:

A. Exempt from Apportionment (4902E, 4901E-B, 4981E) 10 120 130

C. Subtotal

9. Balances Currently Available (4610) 0 80 80

10. Unobligated bal not currently available 120 120

11. Total Status of budgetary resources 130 200 330

RELATIONSHIP OF OBLIGATIONS TO OUTLAYS

15.Outlays

A. Disbursements (+) (4902E,) 80 120 200

17. Net Outlays 80 120 200
12

YEAR 2

STATEMENT OF FINANCING

Xx01xxxx xx02xxxx Consolidated

2. Obligations incurred (4902E, 4901E-B, 4981E) 10 120 130

11. Total Resources Used to Finance Activities 10 120 130

13. Resources that fund PY exp 36 36

17. Total resources Used 36 36

18. Total Resources Used to Finance the Net Cost of Operations (11-18) (26) 94

19. increase in annual leave liability 50 50

30. Net Cost of operations (26) 170 144