I've been confusing myself muchly regarding transfer accounts (Are the 9010's any different from the 9510's in terms of debits and credits?). Now I
am thinking it would be much simpler if I thought of the general operating account 1110 as "general operating" rather than strictly matching deposits and withdrawals (checks written) from the checking account. Is this okay in terms of "accountability"?
Please let me know if my question does not make sense. I think trying to explain what I'm trying to do might be more complicated than my question!
general operating account vs. checking account
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I am trying to show our shared expenses with our day school. They maintain a separate checking account and entirely separate bookkeeping.
They give us a monthly check, which we deposit in our checking account. We pay most of the shared expenses: utilities and insurance and so forth, but they pay some of our expenses such as cleaning. I want to show our true expenses, and I want to show their fair share compared with the reimbursement check they give us. We apportion percentages of the expenses.
I created a separate fund (03) and use the same main account numbers for our checking and our shared expense accounts. My understanding is at the end of the year, the balance of fund 03 ideally should be zero. I don't use any income accounts with it. This scheme seems to work.
My difficulty, though, is with the expenses paid by the school which do not run through our checking account. I've been reluctant to make entries there. I started trying to use the transfer accounts, but I don't really do the whole school accounting, I don't get involved with their assets.
Maybe I need to write a monthly check also to the day school to represent the expenses they pay, instead of just having them write a smaller check to us.
They give us a monthly check, which we deposit in our checking account. We pay most of the shared expenses: utilities and insurance and so forth, but they pay some of our expenses such as cleaning. I want to show our true expenses, and I want to show their fair share compared with the reimbursement check they give us. We apportion percentages of the expenses.
I created a separate fund (03) and use the same main account numbers for our checking and our shared expense accounts. My understanding is at the end of the year, the balance of fund 03 ideally should be zero. I don't use any income accounts with it. This scheme seems to work.
My difficulty, though, is with the expenses paid by the school which do not run through our checking account. I've been reluctant to make entries there. I started trying to use the transfer accounts, but I don't really do the whole school accounting, I don't get involved with their assets.
Maybe I need to write a monthly check also to the day school to represent the expenses they pay, instead of just having them write a smaller check to us.