Changing the Fund Balance

[Randy Sandusky]

When I run the Trial Balance I have a non-zero balance in one of my funds due to the Fund Balance. The Fund Balance is not zero due to a beginning balance which was carried over from last year by mistake. After reviewing last year's report the funds were not transferred as they should have been, and since the same checking account is used for both funds the problem didn't show up anywhere else. What is the best way to correct this so that this year's report is not affected?

[Randy B]

If I understand your dilemma, you want a zero fund balance in the fund. I also think what you are saying is the amount of cash in the fund equals the fund balance. If you want to zero out the fund balance, transfer the cash with a journal entry from the fund you want zeroed out ot the fund that it should have been transferred. You will also need to use a revenue and expense accounts. To the fund receiving the funds, it is a revenue. It is an expense to the fund transferring the funds. You can also use the PowerChurch suggestion for fund transfers. This should zero out your fund.