N.Y. Comp. Codes R. & Regs. Tit. 9 §§ 1645-4.2
Cash and investments for reserves may be transferred to and from each other, as the need arises, by journal entry, duly authorized by resolution of the local agency. Such transfers shall be made at the book value of the investment as of the date of transfer. For example, assume that the vacancy and collection loss reserve has cash and that the painting and decorating reserve, which needs cash, has investments with a book value of $1,050. The journal entry to record the transfer would be:
Entry (6):
| Debit: Account 1176, Reserve Fund Investments | |
| (V & C Reserve) | $1,050 |
| Debit: Account 1113, Reserve Fund | |
| (P & D Reserve) | $1,050 |
| Credit: Account 1176, Reserve Fund Investments | |
| (P & D Reserve) | $1,050 |
| Credit: Account 1113, Reserve Fund | |
| (P & D Reserve) | $1,050 |
Explanation:
To record the transfer or $1,000 face value U.S. Treasury certificate of indebtedness, due October 1, 1948, from the painting and decorating reserve to the vacancy and collection loss reserve, as authorized by resolution no. ____, dated ______, 19_.
N.Y. Comp. Codes R. & Regs. Tit. 9 §§ 1645-4.2