Adjusting Entries to be made in 2006 Missions Operating Acct

[oztheguitarman]

26th May, 08

I need advice/help in making adjusting entries in 2006 which does not balance the funds received in 2007 & 2008.

a) The Missions Operating A/C No 02-1110-000 shows a carried forward
balance from 2006 to begining of 2007 as $ 3559.23 (Debit)

b) The Missions Operating A/C No 02-1110-000 shows a carried forward balance from 2007 to begining of 2008 as $ 5429.23 (Debit)

c) Actual Missions Funds received from January to December 2007
is $ 3740

d) Actual Missions Funds received from January to 26th May 2008
is $ 2394.26

In order to correct wrong entries made in 2006 if I pass the following entries as of 31st December 2006 will this balance my Missions Operating
Account in 2007 & 2008:

CREDIT MISSIONS ASSET OPERATING A/C 02-1110-000 $ 3559.23

DEBIT MISSIONS FUND BALANCE A/C 02-3001-000 $ 3559.23

Will these entries affect the Balance Sheet for 2006, 2007, 2008?

We have done reconcilliation for the Missions account (i.e. General Missions & Missions Shares/Designated accounts) and all entries for
2007 and from 1st January up to 26th May 2008 have been entered
and posted correctly to MISSIONS OPERATING A/C 02-1110-000.

Please advise what is the best way to rectify the posting erros which
were done probably in 2004, 2005 & 2006!

Thanks for your assistance in this matter.

Regards

Osvaldo De Souza

[Matt]

Making this entry will cause an outstanding check to appear on the bank reconciliation, which you will not be able to clear without causing the recon to become out of balance. The question to ask is what fund balance account does the $3,559.23 really belong in? Once you determine this you can prepare the accounting entries to transfer the balance to this fund.

[oztheguitarman]

28th May, 08

Hi Matt,

I have a strong feeling that these funds belong to the Main Operating Account No 01-1110-000.

Whoever passed the entries in 2005/2006 must have debited the Operating Account instead of the Missions A/C 02-1110-000 so the balances were being carried forward.

I have prepared a chart of various accounts for the funds received in 2005, 2006, 2007 & upto 26th May of 2008.

For 2007 & 2008 the Missions Operating a/c 02-1110-000 will balance if
the carried forward balance of $ 3559.23 can be cleared for the period ending 2006.

Any other suggestions to do a detailed check from 2005 & 2006 would be greatly appreciated. (Unable to do any checks for 2004 as the year has been closed).

Thanks for your advice & assistance in this matter.

Regards

Osvaldo De Souza

[Matt]

This being the case, you will want to post the following entry in Fund Accounting to transfer the $3559.23 from the Missions account to the Operating account:

Debit 02-3001-000 $3,559.23
Credit 02-1110-000 $3,559.23
Debit 01-1110-000 $3,559.23
Credit 01-3001-000 $3,559.23

Matt