My church ran out of checks and decided to transfer some funds to their college and use the college checks to pay the church bills. So, here is the scenario- we tranfered 20K into the college account.
Then we used the college checks to pay the church bills until we got some church checks made up. We want to record the church's expenses in the church's chart of accounts. We operate PCP+ for the school as well but as a seperate entity.
How do we account for the transfer of funds between the church and college?
We want to record the expenses incurred by the church and affect the church's chart of accounts?
We want to reflect the college's increase in cash and reduction in cash due to the checks written on behalf of the church?
We want to account properly in th schools books, since the checks were written to cover church expenses, yet they affected the cash position of the school?
Any takers, your help will be appreciated.
Thx
Melloby
A/C ????????
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I think you can just write a check from your operating account to your school account for the total amount of the checks and now apply the check's expenses to the bills the originally paid by the school to your operating.
But, if you did it this way, you would be showing the money to the correct expense line. However you would not be showing the vendor you wrote the checks to, but you could note it on the Line Description of the check.
Let us know how you solve it.
Kristi
But, if you did it this way, you would be showing the money to the correct expense line. However you would not be showing the vendor you wrote the checks to, but you could note it on the Line Description of the check.
Let us know how you solve it.
Kristi
"Trust in the Lord with all your heart and lean not on your own understanding." Proverbs 3:5
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Matt
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Melloby,
Let's say your church fund is Fund 01 and your School Fund is Fund 02. Also, let's say your church checking account is 01-1110-000 and your school checking account is 02-1120-000. Here's how you could handle this.
First, you would need to establish the school checking account in the Church Fund. So, you would need to add the account 01-1120-000 to the church Fund.
Next, you would need to post an entry to show the transfer of the $20K from the church checking account to the school checking account. This entry would be as follows:
DR 01-1120-000 $20K
CR 01-1110-000 $20K
Then, when you paid the church bills using the college checks you would post the entries as follows:
DR 01-5XXX-000 $20K
CR 01-1120-000 $20K
I think this setup answers all of your questions and accomplishes what you are looking for.
Matt
Let's say your church fund is Fund 01 and your School Fund is Fund 02. Also, let's say your church checking account is 01-1110-000 and your school checking account is 02-1120-000. Here's how you could handle this.
First, you would need to establish the school checking account in the Church Fund. So, you would need to add the account 01-1120-000 to the church Fund.
Next, you would need to post an entry to show the transfer of the $20K from the church checking account to the school checking account. This entry would be as follows:
DR 01-1120-000 $20K
CR 01-1110-000 $20K
Then, when you paid the church bills using the college checks you would post the entries as follows:
DR 01-5XXX-000 $20K
CR 01-1120-000 $20K
I think this setup answers all of your questions and accomplishes what you are looking for.
Matt