Transfer Accounts

[fbcacctg]

Hi,

I know the correct way to do transfers between different accounting funds is to use transfer accounts. However....instead of using transfer accounts...would it also be ok to debit an income account.
Here's my specific example...

This is how I know I should make my entry using transfer accounts:
01-1100-000 Checking Account Debit 60.00
01-9502-000 Transfer from Designated Fun Credit 60.00
02-9101-000 Transfer to General Fund Debit 60.00
02-1100-060 Desig. Checking Account Credit 60.00
02-4810-000 AWANA Release Debit 60.00
02-4999-000 Released from Restriction Credit 60.00


HOWEVER, I want this $60 to actually show up in a specific income account for reporting purposes....
Would it be acceptable to make the entry as follows?:

01-1100-000 Checking Account Debit 60.00
01-4500-420 Soccer Camp Income Credit 60.00
02-4610-260 AWANA Designated Income Debit 60.00
02-1100-060 Desig. Checking Account Credit 60.00
02-4810-000 AWANA Release Debit 60.00
02-4999-000 Released from Restriction Credit 60.00

For consolidated reports, total income won't be overstated. Is it acceptable to transfer money between funds this way as well?
Thanks.

[JohnDMeyers]

I'm not a CPA, nor did I ever play one on TV, however, your idea will work.

The main thing to watch for is double-stating income, which, as you noted, you were careful to avoid.

The main difference between using transfer account and debiting an income account, is that you lose the record of the income in the 02-4610-260 account (you zero-out the account, so to speak).

As long as you're ok with that, this will work.