[GNC] How to record 'balancing' trnsactions?

[Chris Green]

On Wed, Jul 12, 2023 at 02:51:39PM -0700, Vincent Dawans wrote:
> Leaving aside the why you need 2 sets of books, I'll just focus on the how.
> 
> First you need to decide if the money in and money out really needs to be
> classified as income and expenses in your first set if books (the main bank
> account) or can more simply be treated fully as pass-through. If fully
> pass-through, then the following...
> 
> *For example we might have 'income' into the current account as*
> *follows:-*
> *    Scarfe Trust for roof       750.00*
> *    Talk and Tea collection     205.00*
> *    Tea concert                 410.00*
> *    Carol singing                35.00*
> 
> Is not recorded as income in your main book but instead as a liability
> towards the building fund. So you create a building fund account under
> liability and when your receive money for the building fund you debit your
> bank account and credit that liability account. Then when you are ready to
> write a check for the building fund, you look at the balance in that little
> account and write the check for that amount. When the check is cashed it
> will come as a credit on your bank account and a debit on the liability
> account. That liability account becomes a sort of running ledger you can
> provide showing money collected then transferred to the building fund over
> time.
> 
> On the building fund side, you can either book the money coming in as
> income directly on the date received from the main account, or if you want
> the detail of all the original transactions, then create a receivable
> account under assets with the same detailed transactions from the other
> side booked against income, then that gets zeroed when the check is
> deposited.
> 
> The opposite movements then are made for payments from the building fund to
> the main accounts of needed.
> 
Thank you Vincent, I think you have outlined an approach that will
work for me.  I will start trying it out and see how things go.

-- 
Chris Green