In response to kayanat's question.
In our pass though fund, we have two types of items. One is where we have contributions to an outside group that we simply collect and then pass along to the intended organization. Usually this is sent each month, so the income and expense for these type of items is same at the end of each month.
The other type is where we collect funds for some special event, like camp, retreats, books or special trips. The church pays the expenses and we collect money from those attending to cover the cost. I've choosen to balance the income and expense for these items at the end of the accounting year. Usually we come up a little short on covering the expenses so I enter a transaction that transfers this excess expense back to our operating account. (See my previous post for example) Through experience we know about how much this will be for most items and we just budget that amount in our normal operating account each year.
This way at the end of the accounting year, the fund balance for this pass through account is always zero.
Fund Accounting
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