Refund contribution

[HWessling]

In January our depositor was short an amount of money. She felt responsible and deposited that money. Once this was discussed several committees felt that this is free will work and that she didn't have to deposit the money. In March I wrote her a check to refund the contribution. I debited the Regular offering and credited cash. Is there something else I need to do? I want the Contribution Fund report to match my Income Statement. I tried to post only to the Contribution report a reversal entry, but it seemed like some numbers were off and not matching up.

Thanks!

[Matt]

I would have debited an expense account rather than the regular offering income account for the shortage. The reason being that the income did come in, but some of it got lost. Lost money is an expense. Doing so will allow your contribution fund report to match your income statement.