Transferring Credit from Designated Fund Liability Account

[gccc]

We recently facilitated a missions trip for our church and ran the travel expenses through a designated fund. Our church Visa card, which is set up as a liability account, was used to pay for the rental van to the airport. After having major problems with the rental, the company wound up refunding part of the charges plus an inconvenience fee. This left the designated missions liability account (04-2205-460) with a credit that I would like to transfer to the General Fund account (01-1110). Could you advise me on how to do this?

Here is how I entered the refund.

Debit Credit
04-2205-460 Chase Mission Trips Refund of 7/6/23 overchg 78.22
04-7460-460 Mission Trips Refund of 7/6/23 overchg 78.22

[NeilZ]

We recently facilitated a missions trip for our church and ran the travel expenses through a designated fund. Our church Visa card, which is set up as a liability account, was used to pay for the rental van to the airport. After having major problems with the rental, the company wound up refunding part of the charges plus an inconvenience fee. This left the designated missions liability account (04-2205-460) with a credit that I would like to transfer to the General Fund account (01-1110). Could you advise me on how to do this?

Here is how I entered the refund.

Debit Credit
04-2205-460 Chase Mission Trips Refund of 7/6/23 overchg 78.22
04-7460-460 Mission Trips Refund of 7/6/23 overchg 78.22

You should have debited the CREDIT CARD liability account as its not 'real money' which you can put in the General Fund. Then when the VIsa is used, and you enter the Invoice/bill in Accounts Payable, those funds are then used. By real money, I mean these are not funds that can show up in the bank.

For now, I would just credit the mission trip liability and debit the credit card liability, as that would basically put the funds in the general fund for use.

I would also add as much detail in the notes block of the transaction to let the auditors know why this was done.