Balancing

[MarkAndrew]

We are preparing our annual report.

We have total Inc 238535.46
Total Exp 202490.47

Excess Inc 36044.99
Tell me if I thinking right here. If I add the excess income to the brginning bal in all accounts should that equal the ending balances in all accounts.

Our Beginning bal 1372.30 + Excess Inc 36044.99 = 37419.29

Checking acct 15525.70 +Savings 21172.06 = 36697.76

What accounts for the difference?? And how do I find the error or mistake.

Thank,
Mark

[JohnDMeyers]

One place to look are cash non-expenses.

In other words, mortgage principle. Money leaves your checking account, but doesn't show up on your income/expense statement. Subtract those off your excess inc/exp.

If you make a depreciation entry, it is a non-cash expense. You make an expense entry, but no cash leaves your checking account. Add that back in to your excess inc/exp.

Changes in liabilities, decreasing assets, other things of these types can have to be dealt with.

[MarkAndrew]

John,

Thanks for the info. I will check that. What I'm confudsed about is that if the mortgage was the issue I would expect the difference to be greater and the difference is only about $800 dollars. The principle is between $200 and $300, so I would be expecting a $2400 to $3600 difference between the two. Which says I may have another problem elsewhere.

Thanks,
Mark

[JohnDMeyers]

Mark:

Exactly. There must be several factors that net out to the amount you are off.

[MarkAndrew]

John

Thanks so much.

That was it, the difference was all the mortgage. We refinanced so we could do some renovations in the church. We had some expenses that came from the proceeds of the loan. No check was written but we had the expense. That and the principle we paid on the mortgage came to exactly the difference.

Thanks,
Mark