ACCOUNTING practice question

[Lewis Overton]

To follow up on this post ...

The solution proposed by Beth is working as hoped. I just reconciled the
bank account for May and that also went well. Looks like a winner. Thanks
again for the help.

Lewy

On 5/20/07, Lewis Overton <akakie at gmail.com> wrote:
>
> Thank you all for your help. I think Beth has the most direct approach.
> I'll give this a try and post how it works. That may take a while to get
> done (or not). I recently learned we have a grant coming in which also needs
> this treatment. Good news for the group.
>
> Lewy
>
> On 5/20/07, Beth Leonard <beth at oasis.slimy.com> wrote:
> >
> > [...]
> >
> > In this way the $100 asset is still in your physical bank account,
> > but you keep track of it as being restricted for use by the Jazz
> > band.  Depending on your needs, you may wish to make a hierarchy
> > like this:
> >
> > Assets
> >   -> Current assets
> >   -> -> Bank Account Placeholder (contains no transactions)
> >   -> -> -> Unrestricted funds (most transactions go here)
> >   -> -> -> Jazz restricted funds
> >   -> -> -> Other restricted funds
> > etc.
> >
> > This way in the account summary page you can easily see how much you
> > have in your bank account (so you don't bounce checks) and how much
> > money is available for general use, as well as how much is in
> > various restricted accounts.
> >
> > When you balance (reconcile) the checkbook with the bank statement,
> > choose "reconcile" from the Bank Account Placeholder and check the
> > "include subaccounts" checkbox.
>
>
>