What should be reflected if an individual fund draws out more resources than its position in an internal investment pool?

When an individual fund withdraws more resources than it holds in an internal investment pool, it creates a situation where the fund has essentially drawn upon credit to meet its needs. To account for this situation, an interfund payable should be reflected. This represents an obligation for the fund to repay the internal investment pool for the excess amount it has drawn.

An interfund payable records the amount owed by one fund to another and reflects the contractual relationship between the funds involved. It is essential for maintaining accurate financial records and providing transparency regarding the financial position of each participating fund within the internal investment system. This ensures that all transactions are accounted for properly, complying with accounting principles and policies concerning interfund transactions.

In contrast, the other options do not accurately represent the obligation that arises when a fund draws more resources than it has in the pool. For example, a transfer would imply a movement of funds between entities without a debt obligation, a negative cash balance could indicate a temporary state of liquidity but does not specify the interfund relationship, and a contra-equity account typically pertains to adjustments against equity rather than liabilities arising from interfund transactions.