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Investment account and restricted funds

Posted: Mon Oct 19, 2020 10:18 pm
by bjwhitson
We have an investment account , 01-1310-000, that we are transferring $10,000 out of and to the Checking account for general fund and restricted fund purposes.
The initial transaction I set up was -
CR 01-1310-000 $10000.00 Investment account
DR 01-1110-000 $ 8650.00 Operating Funds
DR 01-1115-00 $1350.00 Designated Funds
This transaction simply moves the money into the checking account

But here's my question - How do I get the $1350 to show up in the Temporarily Restricted Fund account so that I can write checks against it later. It needs show up in the Fund balance and I'm not sure how to get it there.

I know that this isn't income but how do I increase the balance of the restricted account?

BJ Whitson

Re: Investment account and restricted funds

Posted: Tue Oct 20, 2020 12:05 am
by NeilZ
bjwhitson wrote:
Mon Oct 19, 2020 10:18 pm
We have an investment account , 01-1310-000, that we are transferring $10,000 out of and to the Checking account for general fund and restricted fund purposes.
The initial transaction I set up was -
CR 01-1310-000 $10000.00 Investment account
DR 01-1110-000 $ 8650.00 Operating Funds
DR 01-1115-00 $1350.00 Designated Funds
This transaction simply moves the money into the checking account

But here's my question - How do I get the $1350 to show up in the Temporarily Restricted Fund account so that I can write checks against it later. It needs show up in the Fund balance and I'm not sure how to get it there.

I know that this isn't income but how do I increase the balance of the restricted account?

BJ Whitson
OK .. its going to be a two part transaction, I'm assuming that you're using the standard numbering where 3200 starts the temp restricted accounts, and 3110-000 is the unrestricted fund balance account

Part 1:
01-1310-000 CR 10000.00
01-1110-000 DB 10000.00

Part 2:
01-3110-000 DB 1350.00 (temp restricted fund balance account)
01-3210-000 CR 1350.00

I'd use two transactions as its easier to have an audit trail showing what's happening.

Re: Investment account and restricted funds

Posted: Wed Oct 21, 2020 1:51 pm
by bjwhitson
Thanks, Neil,
As always, your answer did the trick!
Thank you!
BJ Whitson

Re: Investment account and restricted funds

Posted: Wed Oct 21, 2020 2:21 pm
by NeilZ
bjwhitson wrote:
Wed Oct 21, 2020 1:51 pm
Thanks, Neil,
As always, your answer did the trick!
Thank you!
BJ Whitson
I just realized that I mislabeled the 3110-000 in my 'step 2', but I trust you knew what I was trying to say, as 3210-000 was the temp restricted account.