Restricted Account Release

[K. Hurst]

This is my first posting to PC as a new user. My question is this. I have set up a temp. restricted account in our savings account for benevolence income. Once a request is authorized, a release from restriction entry is made and a check is generated from the checking account. How do I show the transfer from the savings acct. to the checking acct.? I am presently recording the transaction as follows:

i.e. Debit 01-4840-108 Benevolence restricted acct.
Credit 01-4999-000 Released from restriction acct.
Credit 01-1110-000 Checking acct.
Debit 01-6205-000 Benevolence

As a previous QB user, I find the double entry system of PC is excellent, but am a little uncertain at times to follow the flow. Thanks for your help!!!

[Jeff]

I am just going to restate this to make sure I understand your question correctly. You have restricted money for benevolance that is in a savings accounts. When money is used for benevolance you transfer money from this savings account to your checking account and write a check from your checking account for the expense.

If I stated your question correctly, this is really 2 different transaction. The first transacion moves money from savings to checking. The transaction to do this would be to debit checking and credit savings.

The next transaction would be to record the writing of the check from your checking account and releasing the money from the restriction. The transaction in your post does this correctly. I wouldn't combine these into 1 transaction because your bank is going to show them as seperate transaction and it will make your reconciliation easier to show the seperately.

Hope this makes sense to you.

[K. Hurst]

Thank you, Jeff, for concisely restating the question and indicating the correct way to record this transaction. I appreciate your assistance!!!

Kathy