First, I want to say how much I appreciate this form!! You are life savers! Now for my problem. On my balance sheet one of my restricted accounts is showing a negative balance. When I do the Account activiity it shows the equity account has a balance of $3,597. The income and release account shows a negative in the same amount. I tried transfer from equity to income which made things look okay on the account activity report but the balance sheet still showed a negative balance. So I reversed that transaction and transfered from equity to income releasing from the release account which of course was wrong. That transaction I also reversed. Please help me with the correct way to get rid of the negative balance on the balance sheet. Thanks so much!
Lois
Restricted accounts
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Zorak
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There is a document here that may help:
http://powerchurch.com/support/answers/ ... icle_id=58
Make sure, firstly, that your income and release accounts are set up with the proper "close to:" equity account. These should both close to the restricted equity account. Your expense and "released from restriction" accounts will close to *unrestricted* equity.
The second thing to look for, is when entering a transaction to spend the restricted funds, you would want the transaction to look like this:
checking account - credit
expense account - debit
(notice the first two lines are like writing any other check)
release account - debit
released from restriction account - credit
The document mentioned above goes into much greater detail here.
Under normal circumstances, unless you are adjusting a beginning balance, you would not ever need to directly affect an equity account in a transaction. The accounts that are set to "close to" that equity account will take care of the equity balance changing automatically when transactions are posted.
http://powerchurch.com/support/answers/ ... icle_id=58
Make sure, firstly, that your income and release accounts are set up with the proper "close to:" equity account. These should both close to the restricted equity account. Your expense and "released from restriction" accounts will close to *unrestricted* equity.
The second thing to look for, is when entering a transaction to spend the restricted funds, you would want the transaction to look like this:
checking account - credit
expense account - debit
(notice the first two lines are like writing any other check)
release account - debit
released from restriction account - credit
The document mentioned above goes into much greater detail here.
Under normal circumstances, unless you are adjusting a beginning balance, you would not ever need to directly affect an equity account in a transaction. The accounts that are set to "close to" that equity account will take care of the equity balance changing automatically when transactions are posted.