Salalah Hospital gave an order to purchase new MRI machine for patients. The total cost of machine is RO 75,000. Today the machine was delivered so there is a need to liquidate the encumbrances. So, the entry will be _______________.

a.

Liquidating encumbrances Dr Budgetary fund balance Cr

b.

Budgetary fund balance reserve Dr Encumbrances account Cr

c.

Encumbrances account Dr Budgetary fund balance reserve Cr

d.

None of the options