I have a long-standing negative balance in an equity Building Fund account. Over a 3 year period, we had received donations for the fund and made major repairs/replacements, i.e., new picture windows, etc. A bookkeeping error was made in recording these, and in an attempt to rectify the error, a -2,847.62 is now the current balance. How can I wipe out this negative balance? The items have been paid for out of donations plus the general fund. The year is closed in which this took place. Where funds are is not in question.
Questions: 1. If I debit the equity account, (01-3260-106 Gen Building Fund) by $2,847.62, will that produce a zero sum in that account? (I know I need the other side to the equation).
2. To what account do I make a credit? There are no more funds in the equity account, obviously, and it is not a liability. Does the credit go to net assets?
Part of the problem I have now is the attempts made earlier to correct this error have just made it worse.
Pat S
