User Support Forum

When I set up the Chart of Accounts, the Endowment funds ended up under the Asset/Investments (1000 level).

I need to move them to Equity accounts - Permanent Restrictions (level 3300).

How do I do this? And do I need to add other release accounts?

Thanks,

Dan

You will need both the asset account and the equity account.

Just add the 3300 equity account.

Did you already make a beginning balance entry into the endowment (asset) account? If so, did you use the unrestricted net asset for equity? If so, do this:
DB 01-3110-000 unrestricted net asset
CR 01-3300-000 permanently restricted net asset

Thanks. Yes I used the unrestricted net asset acct. If I do the journal entry you suggest, won't I still show the balance under the 1300 Asset account?

Yes. But isn't you endowment a cash asset? There are two places where you need to show the endowment.

If you had a $50,000 endowment, and nothing else, your balance sheet will look like this:

ASSETS
....CURRENT ASSETS
........Endowment Cash $50,000
--
--
EQUITY AND LIABILITY
.... PERMANENTLY RESTRICTED
........Endowment Restriction $50,000

Got it! Thanks.

Dan