Journal Entry for reimbursement checks to church

[jordan2k510]

The church womens group covers part of the missions celebration. Here is the sequence of events.
Step 1. Church credit card is used to purchase item which costs $20
Step 2. Church pays credit card bill : CR 1110 checking account $20 / DB ??
Step 3. Womens group writes check for $20 to church to cover the item: CR 4630 Reimbursements $20/ DB 1110 checking account $20
Question: What do I debit to balance the entry in Step 2 when the church pays the credit account bill ??

[NeilZ]

The church womens group covers part of the missions celebration. Here is the sequence of events.
Step 1. Church credit card is used to purchase item which costs $20
Step 2. Church pays credit card bill : CR 1110 checking account $20 / DB ??
Step 3. Womens group writes check for $20 to church to cover the item: CR 4630 Reimbursements $20/ DB 1110 checking account $20
Question: What do I debit to balance the entry in Step 2 when the church pays the credit account bill ??

The thing is, you're showing Reimbursements as income, when in reality they are paying back the church for the 'loan' they got when they used the credit card.

Is this a normal thing at the church, where the church credit card is used to buy items for groups not covered under the church's accounts ??

Logically, this is the way I would do it :
I would have an expense account called "reimbursable expenses", which would be debited when a payment on the credit card is made for an item that will be paid for by an 'outside' group. When the payment comes in, it would Credit the expense account and debit the checking account. Thus, your 'reimbursed expenses' account should always have a 0.00 balance when the money is 'reimbursed'.

Now,this may not be a proper accounting way to do this, but you would be accounting for the money that was advanced then paid back.

[jordan2k510]

Neil,
Thanks just finished applying your instructions and everything looks great.
Judy