LA GL - Fund Accounting: LT, LF, F (Understanding Logos Fund Accounting)

Fund Accounting:

For each fund number, there may only be one of the following account types:

Temporarily Restricted       Type LT must use money for stated purpose

Permanently Restricted      Type LF must keep money and use income earned for stated purpose; (ex: Endowments (only use the earnings and earnings are restricted))

Unrestricted Funds              Type F (usually only one type F account and it is usually the General Fund)


For one General fund, usually Type F, you have the General Fund checking account usually ending in 00.

General Fund Checking Acct 1000-00-00                A

For every fund, you must have at least one Income and one Expense Account.

4000-xx-00 I, 5000-xx-00 E

Money is designated as funds according to the purpose for which it was donated:


Asset:   Bank Account-   GF Checking       1000-00-00 A

Liability:                      GF Acct Pay        2000-00-00 L


General Fund: 00          Type F                3000-00-00 F

           General Income accts:                 4000-xx-00 I

           General Exp accts:                      5000-xx-00 E


Building Fund: 01          Type LF               2000-xx-01 LF

            Building Inc. Accts:                     4000-xx-01 I

            Building Exp Accts:                     5000-xx-01 E


Missions Fund: 02            Type LT             2000-xx-02 LT

             Missions Income Accts:               4000-xx-02 I

             Missions Expense Accts:              5000-xx-02 E


You receive 100,000.00 in donations to the general fund and 50,000.00 to a building fund (you cannot keep meeting in a field).   Your entries would be:


Entry would be                                                                                 Debit                     Credit

Dr           Cash (1000-00-00)                                                            150,000.00

Cr            Contributions Income (3000-xx-00)                                                          100,000.00

Cr            Building Fund Income ( 3000-xx-01)                                                           50,000.00

Income and Expense Statement:

Contributions                  100,000.00

Building Fund Inc              50,000.00

Total Income                  150,000.00


Balance Sheet


Cash                                  150,000.00

Total Assets                        150,000.00

Liabilities/Fund Balances

Building Fund                         50,000.00

General Fund                       100,000.00

Total Liab./Fund                   150,000.00


If we were to look at the actual accounts that are the LT, LF or F accounts we would see no activity in them, and the balance will stay the same all year.   The balance changes when the year close is done,  taking the balance of the LT, LF or F account, adding the income and subtracting the expenses based off the number in the fund segment of the account.  

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