This is a perfect example of why this list is not the place for
accounting advice.
We can't answer, "What should I do?"
You have to know that first, then ask, "How do I accomplish this using
GnuCash?"
In many cases, the answer is, "The same way you'd do so with Pen &
Paper." (sans the actual pen and paper of course)
At best, folks here can offer generalizations. Exact implementation
absolutely *must* be done in consultation with local professionals
versed in the laws of your jurisdiction if your issue is anything but
mere personal musings, and in any case where you have any official duty
or legal obligation.
Regards,
Adrien
On 5/26/24 12:37 PM, Michael Hendry wrote:
I was keen to keep track of restricted funds within GC in a way which would
make unspent restricted income persist as restricted funds beyond the year end,
and you suggested the use of a Liability account for this purpose,
Unfortunately, the accountant who examines our accounts before submission to
OSCR (the Scottish Charities Regulator) advised that this isn’t an acceptable
way to handle restricted funds in the UK.
The problem with using the income accounts (as below) for the various types of
Income, is that the money not spent (in our case on bursaries for musicians who
wouldn’t otherwise be able to attend our courses) doesn’t persist in the that
account after the year end the way a liability would. A collection at the
final-day concert which is advertised as being destined for use as bursaries
won’t be spent until the next year’s course.
On the other hand, if income received for restricted donations is accounted for
in this way, and funds paid out as bursaries are also accounted for in a
separate expense account it should be easy enough to keep a year-on-year tally
of the remaining restricted funds. In practice, we probably spend more than we
receive on bursaries each year, but a church roof might be a longer-term job.
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