ctcLink Accounting Manual | 40.30.20.6 Negative Cash Balance Interest Charges
40.30.20.6 Negative Cash Balance Interest Charges
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 |
40.30.20.5 Investment Interest Distribution << 40.30.20.6 >> 40.30.20.7 Bank Analysis Earnings
