Item 1: Yes on the bank deposit.FBCro wrote:So I have now set up an income account called ESCROW. If I understand it, when the bank deposits funds in our checking account for us to pay for repairs, I would debit checking and credit Escrow. When we pay for the repairs I would credit checking and debit Building Repairs? I hope I have that right. I'm very new to accounting. Does expenses and Income accounts automatically zero out at year end. Will this Escrow account zero out at year-end. Thanks for your help
Item 2: When you pay repairs you'll be using the Accounts Payable module. Yes - CR checking, DB expense
Item 3: Income and Expense zero out when you change the accounting month to the beginning of your fiscal year. If you use a Jan to Dec year, it will zero out when you change the month to January.
Item 4: Yes, the Escrow as an INCOME account will zero out as the income was for the prior year. However, the overall Fund Balance for that General Fund will not zero out.