Problem witeh temp restricted accounts

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meadowbrookfwbchurch
Posts: 10
Joined: Fri Dec 21, 2018 2:06 pm

Problem witeh temp restricted accounts

Post by meadowbrookfwbchurch »

Problem with temporarily restricted accounts

Our church has voted to give 15% of the tithes/offerings to certain missionary and other organizations. In addition to the percentage amount we also have contributions to these accounts.
All money is dispensed at the end of the month except for the Benevolence Fund.
I make a journal entry debiting the percentage giving expense account and crediting the accounts of the missionaries and organizations receiving the money.
Example:
Debit: Percentage Giving Expense 01-6250-101 $1,000.00
Credit: % India Fund Balance 01-3210-101 200.00
Credit: % Panama Fund Balance 01-3212-102 100.00
Credit: % Chicago Mission Fund Balance 01-3214-104 250.00
Credit: % Benevolence Fund Balance 01-3216-106 450.00

I write checks for the entire amount in all of these accounts except Benevolence.
Example of one check
Debit: % India Fund Exp 01-5210-101 $200.00
Credit: Checking Account 01-1110-100 200.00
Debit: % India Fund Release Acct 01-4810-101 200.00
Credit: Released from Restriction 01-4999 200.00
The month end Balance Sheet should show a zero balance, but I end up with a negative balance in the amount of the journal entry.
Is this because I made the journal entry from an expense account to a fund balance account?

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