Tranfer to another Fund

[Eileen]

I need to write a check from our general fund (01) to be deposited to our building fund(02).

Should the transaction look like this:

01-1110 Check credit $1,367.00
01-2301 Buildfund debit $1,367.00
01-9020 "Transfer to Fund 02" credit 1,367.00
02-1210 "Building fund" debit $1,367.00

Or is there some way I should be using account 02-9510 "Transfer from Fund 01"?

Eileen

[Jeff]

01-1110 Check credit $1,367.00
01-2301 Buildfund debit $1,367.00
01-9020 "Transfer to Fund 02" credit 1,367.00
02-1210 "Building fund" debit $1,367.00
It depends on what you are trying to accomplish. The transaction you listed will show as a negative liablity in Fund 01 and will show increase the income in fund 01. Also your equity accounts in fund 02 will be out of balance because you have entered a debit to fund 02 without a corresponding credit.

What specifically are you trying to do? Is fund 01 lending money to fund 02 that will eventually be repaid, or is fund 01 giving money to fund 02?

If Fund 01 is giving money to fund 02 and not expected to repay it, the transaction would typically look something like:
01-1110-000 Checking (credit)
01-9020-000 Transfer to Fund 02 (debit)
02-9510-000 Transfer from Fund 01 (credit)
02-1210-000 Building Fund 01

Transaction need to balance not only debits & credits, but debits and credits should balance within each accounting fund.

[Eileen]

Thank you! The money is being given to fund 02 and not expected to be repaid. Showing me a typical transaction helps!