Adding money to a fund

[Turning Point]

Our church has had some investments come due recently. As I was preparing to turn them in I noticed that the amount entered into PC was not the same amount that was coming due.

I am not really sure what to do. Would it be correct to make the addition as follows:

01-1910-000 CEP Note $100 (debit) (this is where the investment is currently)
01-3110-000 Unrestricted Note Assets $100 (credit).

Thanks.

Lisa

[NeilZ]

Our church has had some investments come due recently. As I was preparing to turn them in I noticed that the amount entered into PC was not the same amount that was coming due.

I am not really sure what to do. Would it be correct to make the addition as follows:

01-1910-000 CEP Note $100 (debit) (this is where the investment is currently)
01-3110-000 Unrestricted Note Assets $100 (credit).

Thanks.

Lisa

Are they cashing in the investments? Are they CD type notes? Is this an increase or decrease, which would make it an unrealized gain/loss until its cashed in. Is the cash coming directly to the checking account? There are a few questions that need answering before any suggestions could be given.

[Turning Point]

currently all the money is being held by the investment firm with interest accruing monthly. I currently have a fund in PC that lists the money as an asset but we don't count it as being "at the church" until we actually withdraw it. Our leadership team just likes to see a line on the financial reports that shows how much is there. I need to add to the account as the amount listed in PC is not correct.

When we request a portion of the funds, then I add it as income when it gets to the bank.

[NeilZ]

currently all the money is being held by the investment firm with interest accruing monthly. I currently have a fund in PC that lists the money as an asset but we don't count it as being "at the church" until we actually withdraw it. Our leadership team just likes to see a line on the financial reports that shows how much is there. I need to add to the account as the amount listed in PC is not correct.

When we request a portion of the funds, then I add it as income when it gets to the bank.

OK ... the interest accrues monthly, does it get added to the investment? If so, this is an unrealized gain and should be accounted for separated from the original investment

In this case you should create an asset account 01-1911-000 CEP Note Unrealized gain/loss, closing to the 01-3110-000 Unrestricted assets

You would then update this to reflect the increases of value of the original note.

So you would DB the 01-1911-000 account, and CR the 01-3110-000 account