The interest that can be used for scholarships should be considered temporarily restricted.
Create a temporary restriction with an equity account, income account, specific release account, by using the Restriction Wizard and receive the money into this account.
01-3210-000 scholarship payment (temporarily restricted)
01-4210-000 scholarship income (closes to 01-3210-000)
01-4810-000 scholarship release (closes to 01-3210-000)
The principle would be permanently restricted. You can simply create an asset account and a permanently restricted equity account (I am assuming this principle was not given to the church in 2012, but sometime before).
If the principle is $10,000, then the entry would be:
DB 01-1820-000 Scholarship Trust $10,000
CR 01-3320-000 Scholarship Trust (in the permanently restricted section of equity) $10,000
Last edited by JohnDMeyers
on Thu Jul 26, 2012 10:35 pm, edited 2 times in total.