User Support Forum

I am using version 10.4 and have a question about a journal entry problem.

Money was transferred from one account to another (01 to 02) in November 2008. When the check was deposited, I used the uncategorized line in 02 because the money was to go into a specified line at a later date.

This year, the money needed to be put in another line item (world changers) in the same account 02. When I did the GE, I did this:

debited uncategorized
credited World Changers

I realize now that the uncategorized line shows a minus amount because it started with a zero balance at the beginning of this year. I need to reverse this transaction, but I don't know how to show the money being moved correctly. Any suggestions would be greatly appreciated.

Last year, the money was income.

I am assuming that when you transferred the money to Fund 02, you debited a bank account, and credited uncategorized income.

This year, the money is not income, it is sitting in your bank account as a hold-over from last year.

If you need to show it as designated to World Changers, you will need an asset account called World Changers Designated, or something like that.

Debit World Changers Designated asset and credit your checking account (that is where the money really is).

Then, you need to remove the negative balance in uncategorized AND the positive income, which you already recorded last year. I would simply reverse that transaction. (credit uncategorized and debit World Changers income).

When you finally spend the money, you can 1) credit World Changers Designations, and debit your checking account. 2) credit your checking account and debit a World Changer expense account.

Thank you for the help!!!