What is the best way to record funds received from the sale of assets - the proceeds will be going to another 501(c)3. I did it as a pass thru but I'm wondering if it would be better as a restricted account so the non-deductible amounts (because of goods received) received will show up in the final reports.
Any suggestions?
Asset sale
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JohnDMeyers
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Re: Asset sale
Where they your assets? In other words, did they show up as assets on your balance sheet, or is it the sale of someone else's assets?
If you are keeping part of the proceeds, then those could be added to your assets (if you are keeping some cash, it would increase a bank account - if you are keeping some other asset, you would create an asset account).
The rest is a pass-through.
So, if you received $1000 that wasn't on your books already, (that is my assumption), and you keep $200 cash and the rest goes to another organization:
DB checking $1000 receive asset
CR liability (to pass-through) $800
CR income (to keep) $200
When you pay the pass-through amount:
CR checking $800
DB liability (to pass-through) $800
If you are keeping part of the proceeds, then those could be added to your assets (if you are keeping some cash, it would increase a bank account - if you are keeping some other asset, you would create an asset account).
The rest is a pass-through.
So, if you received $1000 that wasn't on your books already, (that is my assumption), and you keep $200 cash and the rest goes to another organization:
DB checking $1000 receive asset
CR liability (to pass-through) $800
CR income (to keep) $200
When you pay the pass-through amount:
CR checking $800
DB liability (to pass-through) $800
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