How to move money between checking accounts

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Shelley
Posts: 51
Joined: Wed Apr 09, 2008 12:01 pm
Location: Clovis, NM

How to move money between checking accounts

Post by Shelley »

We have one fund with two checking accounts. We needed to move funds from one checking account to the other and wrote a check to do so. The purpose is to move money from an unused sub-account Youth into the general fund for the Youth department to use.

Credit Checking #2 sub-account Youth for $$
Debit Checking #1 for $$

My question is how do I show the $$ as income for the Youth department? I do have income accounts for youth.

Blessings,
Shelley

JohnDMeyers
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Location: Potsdam, NY
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Re: How to move money between checking accounts

Post by JohnDMeyers »

You only want to show income once. Since the money is already in a checking account, presumably, it got there something like this:

Debit Checking #2 sub-account Youth for $$
Credit Some-income-account $$

If you want to show the income as part of a different income account, do this:

Debit Some-income-account $$
Credit Some-other-income-account $$
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Shelley
Posts: 51
Joined: Wed Apr 09, 2008 12:01 pm
Location: Clovis, NM

Re: How to move money between checking accounts

Post by Shelley »

The income came in prior to the set up of PowerChurch Plus and has been sitting in a seldom used checking account.

When the check was written drawing on Checking #2 and deposited into Checking #1 all I did was :

Credit Checking #2 for $$
Debit Checking #1 for $$

Can I do a journal entry:

Debit Unrestricted Net Assets for $$
Credit General Youth for $$

This is an income sub-account, but it is the only place I can think to show the money so youth has access to it.

Blessings,
Shelley

JohnDMeyers
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Re: How to move money between checking accounts

Post by JohnDMeyers »

I am not sure I understand.

You had checking #2, but never entered the balance into PowerChurch, right?

If the income happened in the current fiscal year:
DB checking #2 asset account
CR youth income

If the income happened in a previous year:
DB checking #2 asset account
CR unrestricted net assets (equity)

To move the money from checking#2 to checking#1
CR checking#2
DB checking#1

If the income happened in a previous year, but you want to show it as "income" in the current year, you should reassign some general tithes to the youth income:
DB general tithes (income)
CR youth income

What this says is that some of the "net profit" from the previous year was actually unused youth income, and some of general tithes from this year will be used to replace the unused youth income from last year (or something to that effect).
You can watch my PowerChurch tutorials now on YouTube!

Visit http://www.youtube.com/user/EmpowerYour ... ture=watch

Shelley
Posts: 51
Joined: Wed Apr 09, 2008 12:01 pm
Location: Clovis, NM

Re: How to move money between checking accounts

Post by Shelley »

We had checking account #2 AND it was entered into PCP at set-up. At set-up it was in checking account #2 sub-account "Youth." We wrote a check from checking account #2 and deposited it in checking account #1. I recorded that transaction like this:

CR Checking Acct #2 sub-account youth
DB Checking Acct #1

Now how do I show it is available for youth? Credit unrestricted net assets and debit youth expense account? Debit unrestricted net assets and credit youth income? I am very confused. :)

Oh, I think your last example is what I should do and will solve the problem yes?

DB general tithes (income)
CR youth income

Blessings,
Shelley

JohnDMeyers
Posts: 1338
Joined: Sun Oct 07, 2007 9:50 am
Location: Potsdam, NY
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Re: How to move money between checking accounts

Post by JohnDMeyers »

Yes. If you do this, I think it will be fine:

DB general tithes (income)
CR youth income
You can watch my PowerChurch tutorials now on YouTube!

Visit http://www.youtube.com/user/EmpowerYour ... ture=watch

Shelley
Posts: 51
Joined: Wed Apr 09, 2008 12:01 pm
Location: Clovis, NM

Re: How to move money between checking accounts

Post by Shelley »

Thank you so much :)

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