Moving Money to a Restricted Account Within the Fund

[Dave Farrington]

Good evening everyone, I hope someone can answer this question.

I need to move $200 from the checking account (01-1110) to a restricted account (01-4210-102). Is it possible to do this? If so how?

Thanks
Dave

[Zorak]

At this point, the income has already been reported, so you wouldn't want to report income a second time. Simply debit your unrestricted equity and credit the particular restricted equity account where you are wanting the money to be shown.

This transaction will "restrict" money after the fact without falsely reporting new income.

[Dave Farrington]

Zorak,

Thank you for the help. We ended up not needing to do this back in January, but now another situation came up where we wanted to do this for a different account. I follwed the instructions and credited equity account number 3202-101 and the money shows there. Next question:

Normally when I receive restricted money for uniforms I would
DB Checking 01-1110
CR Uniforms 01-4202-101
Since I credited the equity account, would the release from restriction still work the same?? This is how I understand the procedure for releasing money
CR Checking 01-1110
DB Uniform expense account 01-6702-101
DB Uniform Release 01-4802-101
CD 01-4999 Relase from Restriction.

I hope I have this correct
Thanks
Dave

[Jeff]

Yes, the release transaction would still work the same. By crediting the restricted equity, it just established the correct balance in the account. The release effectively does the opposite. Here is a break down of the effects of your accounting transaction.

CR Checking 01-1110 (decreases checking)
DB Uniform expense account 01-6702-101 (increases expenses closes to unrestricted equity and decreases it)
DB Uniform Release 01-4802-101 (closes to restricted equity and decreases it)
CD 01-4999 Relase from Restriction (closes to unrestricted equity and increases it)

[Dave Farrington]

Jeff

Thanks for the help I love this forum and the information available

Dave