transfer accts & close-to accts

[nccchurch]

In one of the past newsletters I read the following "usually transfer accounts close to the unrestricted equity account"
What would be an example of a transfer account closing to a temp. restricted equity account?
If the entire fund is temp. restricted - would the transfer accounts close to a temp. restricted acct?

Thank you,
Kathy

[Zorak]

If the money that you are transferring is not currently restricted and you are transferring into a restricted account, then you would want the "Transfer In" account to close directly to the restricted equity account, and the "Transfer Out" account to close to unrestricted equity.

If the money is being transferred from a different restriction, then you would want the "Transfer Out" account to close to the particular restricted equity account that should be decreased.

This will ensure that the appropriate equity balances are updated by the transfer transaction, requiring no further adjustments.

[nccchurch]

Thank you so much!