Accounting Records

[El Bethel Office]

We recently started a new database with fresh numbers, but when we entered Fixed Assets - Land and Building worth it coupled with the General Fund we have set up. The General Fund represents the Primary Checking account, so when we pull a Accounting Fund Balance report, it shows the General Fund amount, which includes the Fixed Assets - Land and Building.

Can you please lend some advice as to how we can correct this error? We were going to create another Fund and call it assets, but then we realize that it might double up on the Fixed Assets amount. Is there another way we can accomplish this?


Thank you

[Jeff]

Creating a separate fund for assets is common in non-profits. Sometimes this is called Plant, Property, & Equipment (PP&E)

If you are going to create a separate fund for assets, you will move this amount from your general fund to you asset fund.

To remove it from your General Fund you will credit the asset and debit the unrestricted equity account.

To list it in your asset fund, debit the asset and credit the unrestricted equity account in that fund.

[El Bethel Office]

Maybe I am not understanding based on what you replied, but will this cause a conflict against the original entry of Fixed Assets (Land and Building); causing a doubling of the amounts?

[JohnDMeyers]

Is this something like what you have now?

ASSETS
..Checking $1,500.00
..Land and Bldg $50,000.00

EQUITY
..Unrestricted Net Assets $51,500.00

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If so, if you do what Jeff suggests:
CR 01-1810-000 Land and Bldg $50,000.00
DB 01-3110-000 Unrestricted Net Assets $50,000.00
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Will result in this in the General Fund:

ASSETS
..Checking $1,500.00
..Land and Bldg $0.00

EQUITY
..Unrestricted Net Assets $1,500.00