So far we have only had one asset account (checking) but we just opened a savings account. What is the proper way to enter:
1. transfers from checking to savings
2. deposits straight into savings
Thank you!
help with savings asset account
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tlovegrove
- Posts: 5
- Joined: Mon Feb 02, 2004 10:16 pm
- Location: Grace Bible Church
- Contact:
The way to transfer money from checking to savings is as follows:
Debit Savings Account
Credit Checking Account
You can do this by writing a check or if you bank would do it for you automatically you would have to enter it into the accounting module
As to your second question, the only way to automatically update your savings would be to establish a contribution fund.
Debit Savings Account
Credit Checking Account
You can do this by writing a check or if you bank would do it for you automatically you would have to enter it into the accounting module
As to your second question, the only way to automatically update your savings would be to establish a contribution fund.
Randy B
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jeffkoke
- Posts: 298
- Joined: Sat Oct 11, 2003 9:43 am
- Location: Great Bridge Church of God, Chesapeake VA
- Contact:
Randy,
When you are moving/transferring money from checking to savings, you are basically reallocating assets.
If you use a contribution account, it would (normally) be considered income and show on the income line of the I&E report.
I would think that you would want to do a general ledger entry for the transfer. And there's probably more than one way to do it.
Also, if the church owns a building and other capital equipment, that should have its own line in the chart of accounts.
If I'm off-base in not understanding the question, please let me know.
Jeff
When you are moving/transferring money from checking to savings, you are basically reallocating assets.
If you use a contribution account, it would (normally) be considered income and show on the income line of the I&E report.
I would think that you would want to do a general ledger entry for the transfer. And there's probably more than one way to do it.
Also, if the church owns a building and other capital equipment, that should have its own line in the chart of accounts.
If I'm off-base in not understanding the question, please let me know.
Jeff
Jeff
--
Jeff Koke, KK4SN
Great Bridge Church of God
Chesapeake VA
"Every Father should remember that one day his
children will follow his example instead of his advice."
--
Jeff Koke, KK4SN
Great Bridge Church of God
Chesapeake VA
"Every Father should remember that one day his
children will follow his example instead of his advice."
Jeff:
You are correct in your understanding. My proposed journal entry would be used if you were doing a general ledger transfer entry. You most likely would do that if you were moving moving between accounts at the same bank.
I mentioned writing a check in the accounts payable if the savings account and checking account were at different financial institutions.
I also mentioned the contribution fund approach if you were making a deposit into savings thereby eliminating first putting the money in checking and then moving it into savings. This would be unlikely but could be done.
Of course your point on considering the chart accounts when moving money between funds is valid and well taken.
You are correct in your understanding. My proposed journal entry would be used if you were doing a general ledger transfer entry. You most likely would do that if you were moving moving between accounts at the same bank.
I mentioned writing a check in the accounts payable if the savings account and checking account were at different financial institutions.
I also mentioned the contribution fund approach if you were making a deposit into savings thereby eliminating first putting the money in checking and then moving it into savings. This would be unlikely but could be done.
Of course your point on considering the chart accounts when moving money between funds is valid and well taken.
Randy B