[GNC] How to manage earmarked funds

[Mike or Penny Novack]

On 9/12/2019 1:49 PM, Fred Frazelle wrote:
> Dear sirs:
>
>     We are a non-profit and receive contributions.  Every once in a 
> while the Assembly sets up a fund for something special, like a Center 
> and the believers contribute.  The money in this fund cannot be used 
> for anything else.  Since we are just setting this up, we already have 
> some money in one of these Funds.  We set the account Center up as a 
> liability, since it hasn't been built yet but then the program says 
> Imbalance (i really like this feature - you can see immediately that 
> something is amiss - lol).  i already have the monetary amount listed 
> in one of the Equity/Opening Balances. Obviously i'm not an accountant 
> and am trying to wrap my head around this... 

But that you got an "Imbalance" simply means that you did not enter the 
transaction correctly <<you ARE using one of the methods for dealing 
with "restricted funds".

I assume you were creating this liability account (Center) with an 
initial balance? The other side of that transaction would be Equity. 
That would be a debit to equity << I bet you got the imbalance because 
you credited both Center and Equity>>

Michael D Novack