Endowment Fund

[christybeth]

First of all, thank you for your promptness in responses and I hope that you all get quickly better from the flu as I've been sick myself. We have a few Endowment accounts. Sometimes a check is sent to us from a recipient so we'll turn around and write a check to the Investment group to have it added to that fund. My question is, how do I book all of that? When the money comes in, I book it as a credit to the restricted account but then I'll debit that account when I write a check to the Investment group. Unfortunately, that is showing up as a debit to the account. I've listed an example of my numbers below so you can review them.

Check received:
31-1430 Endowment Foundation - debit
31-4100 Contribution - credit

Check sent to Investment Group:
31-1140 Bank Restricted - credit
31-5831 Family Endowment - debit

When I run a Inc & Exp Statement, it shows a negative budget different since I wrote the check. How can I still show the money so that it is reported properly in a Balance Report and also not show up as a negative in the Inc & Exp Statement?

Thank you for your assistance!

Christy

[NeilZ]

OK ... what you're doing is a bit unusual:

You have contributions coming in and you're debiting an Asset account, but then you're writing a check from the checking account, which is another asset account.

Are you actually depositing funds into that 1430-000 asset account? If so, you shouldn't be writing a check against the 1140 account.

If you're depositing to the 1140 account, you should not be debiting the 1430 account.

Before I can give any advice, I need to know the thinking behind that, and exactly where the funds are being put.