Church Use of GNUCash

[Mike or Penny Novack]

On 12/22/2017 1:56 PM, Aaron Laws wrote:
> Excellent; thank you. One more question:
>

>
> Assets:Chequing    x
>        Liabilities:Organ Fund        x
>
> Then some expense:
>
> Expense:Organ   x
>           Assets:Chequing      x
>
> But then how is the encumbrance relieved?
>
> << an adjustment transaction is made >> How does that adjustment 
> transaction look?
Opens the whole topic of "journal transactions" << there are more 
possible adjustment transactions than this >>

But that is how I would do it. Let's say we had a restricted fund for X 
(the X fund) and it had a liability balance of $1000. Let's say that we 
were adjusting quarterly (will discuss later if likely a one shot 
situation). The quarterly total of X expenses were $400 (expenses 
qualified to be be paid put of the restricted fund). I would enter a 
transaction debiting the liability and crediting equity for $400 giving 
the description "released form restriction in 3rd quarter" (or 
whatever). If this were a large restricted fund only a portion of which 
used each year, might do that adjustment annually along with all the 
other year end adjustments << that is when the bulk of "journal 
transactions would be" >>

BUT -- if this were a one shot deal, say we were raising a fund and 
using it all at once ) possibly with general organization funds added I 
might choose to do it along with the purchase transaction. Wait till you 
have lots of experience with split transactions before you tackle a 
fancy two way split like that.

Michael D Novack


-- 
There is no possibility of social justice on a dead planet except the equality of the grave.