How do I move amounts between fund balances within the same fund?
- 30 Jan 2023
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How do I move amounts between fund balances within the same fund?
- Updated on 30 Jan 2023
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To move money between fund balance accounts in the same fund, use the transfer accounts rather than booking directly to the fund balance accounts.
Answer:
To move amounts between fund balances within the same fund, do a journal entry in the General Ledger using transfer accounts. You should never make an entry directly to a fund balance account (Q accounts). Reports and other utilities do not take into account any activity posted to them.
EXAMPLE: You have 3 fund balance accounts Q1, Q2 and Q3.
The journal entry would be: Debit a transfer account (T2) for $5,000 and credit a transfer account (T3) for $5,000.
After you post the journal entry, your total fund balance is still $125,000 and the individual fund balances have been redistributed as follows:
EXAMPLE: You have 3 fund balance accounts Q1, Q2 and Q3.
- Q1 has a balance of $100,000.
- Q2 has a balance of $20,000.
- Q3 has a balance of $5,000.
The journal entry would be: Debit a transfer account (T2) for $5,000 and credit a transfer account (T3) for $5,000.
After you post the journal entry, your total fund balance is still $125,000 and the individual fund balances have been redistributed as follows:
- Q1 has a balance of $100,000.
- Q2 has a balance of $15,000.
- Q3 has a balance of $10,000.
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