Proceeds from the sale of city personal property are credited to which fund?

Proceeds from the sale of city personal property are credited to which fund?

• A. General Fund
• B. Department Fund
• C. Capital Projects Fund
• D. Special Revenue Fund

Answer: (B)

When a city sells its own personal property, the proceeds belong to the fund that owns or uses that property—the department’s own fund. Recording the sale in the Department Fund keeps resources tied to the department responsible for the asset, which supports proper accountability and allows those funds to be used for the department’s ongoing operations or equipment needs as authorized. If the sale involved a city-wide capital project or funds restricted for a specific purpose, different funds would apply (such as a Capital Projects Fund or a Special Revenue Fund). But for personal property owned by a department, crediting the Department Fund best reflects where the proceeds belong and how they’ll be used.

When a city sells its own personal property, the proceeds belong to the fund that owns or uses that property—the department’s own fund. Recording the sale in the Department Fund keeps resources tied to the department responsible for the asset, which supports proper accountability and allows those funds to be used for the department’s ongoing operations or equipment needs as authorized. If the sale involved a city-wide capital project or funds restricted for a specific purpose, different funds would apply (such as a Capital Projects Fund or a Special Revenue Fund). But for personal property owned by a department, crediting the Department Fund best reflects where the proceeds belong and how they’ll be used.