deposit

CJT10CJT10 Member Posts: 4

we have a not for profit horse club, we have received $2000 from a grant. 

this money will be spent later in the year to purchase equipment. 

where should the deposit sit initially? I don't want it to look like it's money we have to spend. thanks

Comments

  • Kris_WilliamsKris_Williams Member Posts: 2,030 ✭✭✭✭

    I would put it to an income account called Grants received

  • SuFraserSuFraser Member Posts: 5

    Hello CJT10

    If you are not going to spend this money now, then it should be posted to a Liability account until acquittal (spent). It is treated as a liability because you have an obligation to spend/put towards an expenditure.

    You can either create a new account under your Current Liabilities (Grants - For Acquittal), or even just post it to your Liability account for Advance Revenue (if you have such already).

    One you have spent those funds, you can then perform a journal from your Liability Account to your Other Income/Grants Received account.

    Cheerio!

  • CJT10CJT10 Member Posts: 4

    thanks very much, that's what we will do as we don't plan to spend the funds immediately

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