Correcting entry regarding income entries(QUESTION)

1)Contributions are made and the initial entry is a debit to regular checking account(unrestricted fund)and a credit to adult church support(income account).
2)A mortgage payment is made out of this regular checking account because there was not enough funds in the Building and Grounds checking account.(where mortgage payments are usually made out of).
3)Should there be a correcting entry; a debit to adult church support(income account)and a credit to Building and Grounds income account to reflect the actual use of the monies received?

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Comments for Correcting entry regarding income entries(QUESTION)

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Oct 10, 2010
Journal Entry for Transferring Funds
by: Vickey

I am not sure how you have your bookkeeping set up, but I would have recorded the mortgage payment under the building fund if that is which fund you pay your mortgage out of...even though it would have shown a negative balance. Then I would have transferred funds from the general fund into the building fund.

My ebook Fund Accounting gives some examples of journal entries for transferring funds.

Apr 19, 2012
Asset treated as Expense
by: Anonymous

How will you correct the entry of an asset account recorded previously as an expense?

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Join in and write your own page! It's easy to do. How? Simply click here to return to Church Accounting FAQs.

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