Investment Funds

[Pat Adams]

We invested in an Investment Firm and I wrote a check to that firm which reduced my checking account.
The administrator wants that check amount (our Investment amount) to print out on Fund Accounts at the end of the month for the check amount. To do that I entered the check amount as a deposit in Fund #3. When I reconciled my checking account at the end of the month I discovered that entering the check amount into Fund#3 as a deposit was wrong. What can I do now to remove the check amount (as a deposit) from Fund #3 but still have it print out on Fund Accounts at month end?

[Matt]

Please provide the debit and credit accounts that were posted when you wrote the check and also when you entered the check as a deposit in Fund #3. Also, please provide the chart of accounts number for your checking account. Also, please provide the specific name of the report your administrator wants to see the check amount print out on. I don't know what report "Fund Accounts" is.

[Pat Adams]

In Fund #3 I debited Bank #03-1110-000
Credited Investments #03-4025-000
I balanced so I didn't worry until my Check reconcilement didn't balance.
I need the invested amount (5000.00) out of the bank acct, but where do I debit it?
This is my Fund#3:
Investments 03 1000 000
Bank 03 1110 000 ($5000.00)
Investment Fund 03 1210 000
Balances 03 3000 000
Fund Balance 03 3001 000
Income 03 4000 000
Investments 03 4025 000 ($5000.00)
Interest Paid 03 4030 000
Transfer from Gen Fund 03 4065 000
Expenses 03 5000 000
General Exp 03 5110 000
Transfer to Gen Fund 03 5115 000

[Matt]

Thank you Pat. Here's what I think you need to do. In Fund Accounting, enter the following transaction:

Debit 03-1210-000 $5,000.00
Credit 03-1110-000 $5,000.00

This should get your bank recon back into balance and allow the investment to show up on your balance sheet.

[Pat Adams]

I see how that would remove the $5000.00 from the bank (03-1110-000)

but-- what will remove the $5000.00 deposit from my check register. Right now I am just not selecting it (indication the deposit has not cleared) and actually since there was no actual deposit , it really has not cleared.
I need more suggestions.
Thanks!

[Matt]

Once you post the entry I suggested the bank recon will show two entries for the $5,000--a deposit for $5,000 and a "check" for $5,000. All you need to do is clear these against each other when doing the bank recon.

[Pat Adams]

Thanks Matt at Saks Baptist Church. That worked and now my check register is in balance. I had tried earlier to move the amount in Fund#3, but did not check my check register for the corrected amt. Just goes to show sometimes we need someone else to see past the trees in the forest.Thanks as bunch!