MUST HAVE REFERENCE GUIDE

Site Map or Site Search

CHURCH ACCOUNTING PACKAGE

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?


Know the answer? Face the same situation? Please post your answer or comment by using the "comment" link below. Thank you!

Comments for Correcting entry regarding income entries(QUESTION)

Click here to add your own comments

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?

Click here to add your own comments

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

If you want to DIY your payroll, I highly recommend you look at using Gusto! It is very user friendly and their support is awesome! Plus they know how to set up and maintain payrolls for churches and nonprofit organizations.

Note: I am a "partner" of Gusto, but as I have told you before ... I never recommend anything that we or our clients have not tried and love =)



Share this page:
Enjoy this page? Please pay it forward. Here's how...

Would you prefer to share this page with others by linking to it?

  1. Click on the HTML link code below.
  2. Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.