How to post transactions re 'earmarked' contributions, and how to post in-kind contributions
Anita Graves
anitagraves at mac.com
Thu May 18 11:03:02 EDT 2017
Dear All,
I am the treasurer for a religious organization and we have contributions coming in that are earmarked for a certain purpose. I propose to enter these as separate Asset child accounts and then spend them in the corresponding expense account. Do I have that right?
What do I do with ‘in-kind’ contributions? No cash changes hands but it is the same difference, so do I debit the cash income account and credit the expense account?
Thanks for helping, everyone.
Anita
>
> Exactly—the bank shows our actual lump asset, but we care about the movement of these ‘earmarked’ funds and keep them in our reports, so we know at a glance how much spendable money in the bank we actually have, as opposed to what the bank statment gives as our balance.
>
> Anita
>
>> On 18 May 2017, at 5:49 PM, Maf. King <maf at chilwell.net> wrote:
>>
>> On Thursday, 18 May 2017 15:39:59 BST you wrote:
>>> Maf, I forgot to mention an important thing: I am not moving money from the
>>> bank, I am keeping it in the GC account tree along with cash, current,
>>> savings accounts, so one would only know about these funds that are set
>>> aside by looking at the GC accounts, not by looking at the bank statement.
>>> It initially comes in as a contribution, and so I would put the
>>> contribution in the asset subaccount, as an earmarked account, and then
>>> spend that balance down to zero in the expense account. Is that right?
>>>
>>
>> Yes. your GC bank account can have sub-accounts - virtual "pots" of money
>> that only show up if you look at GC. The bank thinks you have 1 "big"
>> account, you think in terms of several mini accounts within the main bank
>> account that keep your reserved totals easy to find...
>>
>> Maf.
>>
>
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