Balances forward of unused cash advances from previous year

[Anita Graves]

Dear All GC friends,

In the previous financial year, there were some funds advanced to two different 
persons for two different expense categories that appear in the account tree of 
that year.  In both of these accounts, there are now expenses to record to use 
up those cash advances, and I have the same accounts in this year’s account 
tree.

I do not know how to account for these unusued balances that carry over to this 
new year and to record the expenses in this new year to zero out the balances 
of the cash advances.  Are they to be confused with the equity account?  
Balances forward???  Are they child accounts to some parent accounts?  

Thanks for your help….

Anita 

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Re: Balances forward of unused cash advances from previous year

[Maf. King]

Hi Anita.

I think I would record them at start of year in an asset account - something 
like Assets:AdvancePaymentsMade.  Then as you "use up" the pre paid expense, 
transfer between Expenses:widgets and A:AdvPay so that the asset tends to 
zero.

This presumes that if the expense didn't really happen, you'd be entitled to a 
refund of the payment, and that any tax treatment is expecting you to claim 
for the expense as it happens, not when you paid last year (ie not accrual 
basis).

It also presumes that you have checked your local laws and practices for any 
specific guidance, esp. in the case of business accounting.


IANAA etc.
Maf.


On Thursday, 18 May 2017 12:16:44 BST Anita Graves wrote:
> Dear All GC friends,
> 
> In the previous financial year, there were some funds advanced to two
> different persons for two different expense categories that appear in the
> account tree of that year.  In both of these accounts, there are now
> expenses to record to use up those cash advances, and I have the same
> accounts in this year’s account tree.
> 
> I do not know how to account for these unusued balances that carry over to
> this new year and to record the expenses in this new year to zero out the
> balances of the cash advances.  Are they to be confused with the equity
> account?  Balances forward???  Are they child accounts to some parent
> accounts?
> 
> Thanks for your help….
> 
> Anita




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Re: Balances forward of unused cash advances from previous year

[Maf. King]

On Thursday, 18 May 2017 13:07:07 BST Anita Graves wrote:

> 
> What is a widget?
> 

A generic term for raw materials that one might buy to incorporate into a 
finished product.  I have no idea what your expenses are - so a generic term 
seemed appropriate.

as in "this gadget uses a new design of widget to improve the efficiency of the 
sproket to grommet conversion ratio"

Also, AFAIK, first commonly used to refer to the little bit of plastic invented 
in the 80s to make Draught Guinness Beer in cans taste more-or-less like it 
does from the pump in the pub. 

Yes, I know Guinness is Stout not "just" beer.  Flames -> /dev/warm-the-mash

HTH,
Maf.

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Re: Balances forward of unused cash advances from previous year

[Anita Graves]

Maf,

Exactly—the bank shows our actual lump asset, but we care about the movement of 
these ‘earmarked’ funds and keep them in our reports, so we know at a glance 
how much spendable money in the bank we actually have, as opposed to what the 
bank statment gives as our balance.

Anita

> On 18 May 2017, at 5:49 PM, Maf. King  wrote:
> 
> On Thursday, 18 May 2017 15:39:59 BST you wrote:
>> Maf, I forgot to mention an important thing:  I am not moving money from the
>> bank, I am keeping it in the GC account tree along with cash, current,
>> savings accounts, so one would only know about these funds that are set
>> aside by looking at the GC accounts, not by looking at the bank statement. 
>> It initially comes in as a contribution, and so I would put the
>> contribution in the asset subaccount, as an earmarked account, and then
>> spend that balance down to zero in the expense account.  Is that right?
>> 
> 
> Yes.  your GC bank account can have sub-accounts - virtual "pots" of money 
> that only show up if you look at GC.   The bank thinks you have 1 "big" 
> account, you think in terms of several mini accounts within the main bank 
> account that keep your reserved totals easy to find...
> 
> Maf.
> 

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Re: Balances forward of unused cash advances from previous year

[John Ralls]

> On May 18, 2017, at 5:39 AM, Maf. King  wrote:
> 
> On Thursday, 18 May 2017 13:07:07 BST Anita Graves wrote:
> 
>> 
>> What is a widget?
>> 
> 
> A generic term for raw materials that one might buy to incorporate into a 
> finished product.  I have no idea what your expenses are - so a generic term 
> seemed appropriate.
> 
> as in "this gadget uses a new design of widget to improve the efficiency of 
> the 
> sproket to grommet conversion ratio"
> 
> Also, AFAIK, first commonly used to refer to the little bit of plastic 
> invented 
> in the 80s to make Draught Guinness Beer in cans taste more-or-less like it 
> does from the pump in the pub. 
> 
> Yes, I know Guinness is Stout not "just" beer.  Flames -> /dev/warm-the-mash
> 

Just for fun, I'll point out that "gadgets" and "widgets" are generic but 
"sprocket" (the toothed wheels on your bicycle that engage the chain) and 
"grommet" (a fitting that goes around the edge of a hole either to prevent 
chafing or to reinforce the hole) are real things. Converting one to the other 
would be an interesting project. ;-)

http://www.dictionary.com/browse/widget 
 says that the word first appeared in 
the 1920s.

Regards,
John Ralls
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Re: Balances forward of unused cash advances from previous year

[Adrien Monteleone]

Speaking of Irish stout I plan to be brewing some this weekend, perhaps with 
cherries. We might do a porter instead though, still deciding on recipes.

Stay thirsty,

Adrien

> On May 18, 2017, at 7:39 AM, Maf. King  wrote:
> 
> On Thursday, 18 May 2017 13:07:07 BST Anita Graves wrote:
> 
>> 
>> What is a widget?
>> 
> 
> A generic term for raw materials that one might buy to incorporate into a 
> finished product.  I have no idea what your expenses are - so a generic term 
> seemed appropriate.
> 
> as in "this gadget uses a new design of widget to improve the efficiency of 
> the 
> sproket to grommet conversion ratio"
> 
> Also, AFAIK, first commonly used to refer to the little bit of plastic 
> invented 
> in the 80s to make Draught Guinness Beer in cans taste more-or-less like it 
> does from the pump in the pub. 
> 
> Yes, I know Guinness is Stout not "just" beer.  Flames -> /dev/warm-the-mash
> 
> HTH,
> Maf.
> 
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