Balance Forward carryover asset accounts

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Balance Forward carryover asset accounts

Post by tampatreasurer »

I am the Treasurer of our Church in Tampa and am trying to clean up Balance Sheet accounts. We have several current 3000 level balance sheet carryover accounts that will have expenses exceeding income after releasing forcing them into negative balances. In researching the history of the 3000 level carryover accounts there are several additional accounts that should have negative carryover balances if they had been properly released over the years. Do I allow those accounts to remain negative at the close of the year or do I zero those account by adjusting their balances to net income?

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Re: Balance Forward carryover asset accounts

Post by Jeff »

It depends on what you are wanting to do. If these are ongoing restrictions, do you expect future contributions to cover the amounts already expensed? If you do, yo would leave the restricted equity accounts with a negative balance.

If you do not expect the restriction to continue or new contributions to NOT cover the previous expenses then you adjust their balance to zero out the amounts.

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