User Support Forum

We recently purchased the property next door. I used funds from the general fund to pay the down payment. Afterward we received a donation to cover the total cost and some remodeling. I need to restrict the donation until the purchase is complete and the remodel is finished. I would like to move the down payment from general fund to the restricted fund. It has already been posted in AP and Fund Acct.
The post was as follows:
Credit checking 01-1110-000
Debit Property Purchase Fund 01-5615-000

The accts for the restriction are as follows:
asset 01-3215-000
income 01-4215-000
release 01-4815-000
expense 01-5615-000

I think I should debit the release acct 01-4815-000 and debit the release funds acct 01-4999
Again this is just for the down payment which is already posted in fund acct.
Is this correct and can I do this with a journal entry?

Sorry I meant the equity acct is 01-3215-000

Just to be sure, I want to list the "closes-to" account for each:
The accts for the restriction are as follows:
asset 01-3215-000 (actually, this is an "equity" account)
income 01-4215-000 closes to 3215-000
release 01-4815-000 closes to 3215-000
general 01-4999-000 closes to 3110-000
expense 01-5615-000 closes to 3110-000



You first have to move the money to the restricted income account, like this:

Transaction #1
DB 01-4100-000 unrestricted income (I don't know what your actual account number is)
CR 01-4215-000 restricted income

Then, you already have the next two transactions done correctly. They are (don't do these, because you already have done them):

Transaction #2
CR 01-1110-000
DB 01-5615-000

Transaction #3
DB 01-4815-000
CR 01-4999-000

You can do Transaction #1, even though you already did Transactions #2 and #3. If you don't do #1, you will have a negative equity amount in 3215-000.

Thanks John, this is what I needed to know. I did "like" your facebook page and will hopefully get to look at the tutorials later this weekend or maybe early next week. I can't wait.