suggestions for setting up accounts for money in trust

[Eric E Moore]

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jeff covey <jeff.covey@pobox.com> writes:

> part of the money in my bank account doesn't actually belong to me,
> but to a couple of groups i'm involved with.  they aren't big enough
> to require their own bank accounts, but do have expenses that need to
> be met, so people give me money, and i keep it in my personal checking
> account and pay bills to web hosting companies, etc.  how should i
> handle these accounts-within-an-account?  i don't want them showing up
> on my income and expenses figures, because that money has nothing to
> do with me and will distort my view of my personal finances.  how
> would you set this up?

Simplest would be to create a liability account for each group.  This
is the money you "owe" them.  When you deposit a check for a group,
you debit your bank account (increasing the balance), and match it
with a credit to this liability account.  When you write a check for
the group to the web hosting company, credit checking, debit the
liability account.  An "Account Summary" report, including the
liability accounts and your bank account would tell you how much money
in your bank account is *yours*, while the balance of the bank account
would be how much money is actually in it (so you can compare to what
the bank tells you is in there).  Since expense/income accounts never
enter into it, it shouldn't mess up your income/expense reports.=20

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Eric E. Moore

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