NOnbudget maintenance

[FBCVandalia]

version 11.5

Our church does not budget for large maintenance or improvements - anything over $1500.00.
The software we used before was not double entry accounting, just used check book and expense account labeled Nonbudgeted maintenance.

Not sure how to handle this in the new system. This is what I'm thinking:
If it is an improvement or new equipment, I am considering it a capital improvement & will do the following:
debiting fixed asset account (making a new account with name of item)
credit checking account
Should there be an expense account, as well?

If it is a large maintenance item that is not considered a capital improvement, how would I handle that?


Pamela Shaw
Church Treasurer

[JohnDMeyers]

I am just a former high school teacher with an engineering degree, so this is not accounting advice.

What I do is this. I have two categories: Land and Building, Furniture and Equipment

"Land and Building" is for categories of things that are not typically depreciated, like "land" and "buildings".

Furniture and Equipment is for things that are depreciated. This includes office equipment, carpet, chairs, furnace, lawn mower, vehicles, and things like that. From this category, we make our depreciation entry.
CR 01-1910-000 Depreciation Reserve
DB 01-5890-000 Depreciation Expense