The investment accounts hold the balances of each investment. One investment could have multiple donor restricted amounts in it. We don't need to know here what donor restictions are 'inside" each investment, just the total of each investment. When setting up the donor restrictions, we need to know what the current balance for each donor restriction is. Again we don't need to know exactly where that money is located just the total for each donor restriction.
For example say you 10,000 in donor restricted money. It is physically in the following accounts:
Investment 1 has 5,000
Investment 2 has 3,000
Checking account has 2,000
In addition we have another 5,000 in our checking account for general expenses.
The 10,000 of restricted money is made up of the following donor retrictions:
New Education Building 7,000
Benevolance fund 2,000
New Choir Robes 1,000
Our balance sheet would look like the following:
Code: Select all
Assets
Checking $7,000
Investment 1 5,000
Investment 2 3,000
Total Assets $15,000
======
Liabilities
Equity
Unrestricted
Unrestricted $5,000
Restricted
Temporarily Restricted
New Education Building 7,000
Benevolance fund 2,000
New Choir Robes 1,000
Subtotal Temporily Restricted 10,000
Total Equity 15,000
Total Equity + Liabilities $15,000
=======
To find the "balance" for each donor restriction, we look at its corresponding equity account. So what you are setting up in that stage of the assistant is not the balance of the investment accounts but what is going to be shown as the balance for that donor restriction in the equity section.