Skip to main content
B
Brew1465
July 12, 2021
Question

Non-current Liabilities

  • July 12, 2021
  • 1 reply
  • 0 views

Dear fellow QB Online experts.

I am Treasurer of a Church Charity and we have a Non-current Liability called the 'Continuity Fund' which is money set-aside for future Building-related expenses and for when we need to recruit a new priest.

I want to add £90,000 to the fund as we have decided that we need to set-aside more money for the purposes described.  However I have no idea how to change or add to the fund without affecting our cash at hand and in the bank.  The money is not coming in as a transaction, rather we want to increase the amount shown on the Balance Sheet.  Again, the money does not reside in any of our five bank accounts as such.  Rather it is notional money reserved within our funds for the purpose mentioned.  Please help!  

1 reply

RoscoPC
RoscoPC
September 26, 2021

Hi there,

 

I think you probably need to set up two accounts. It's double entry book keeping. SO to make provision that so it shows in the balance sheet. 1 do you already have an account in the balance sheet showing a figure for the Continuity Fund? If you do there must be another account that holds the opposite side of that transaction. Look at history all to find out how this was previously accounted for. 

 

Not in balance sheet - Create 2 accounts. One has to be the long term liability Continuity Fund and the other is Continuity Fund Capital under Capital and Reserves.

 

So the long term liability account -   Account Type - non-Current Liability - Detail - Provision for liabilities - name - Continuity Fund Liability

 

The Capital account - Account type - Equity - Detail Type Partner Contributions - Name - Continuity Fund

 

Once these are set up then create a Journal Entry  Debit the Continuity Fund Liability account and Credit the the Continuity Fund Capital account. 

 

I find it easier to number the accounts too so that you know which is which. Once you've created the Journal entry and saved it. run a balance sheet report, you should see the two accounts on the balance sheet as you want.  The bank account etc. remains unaffected.

 

When any money is then reduce the liability and capital accounts accordingly. 

 

Hope that helps. 

 

Kindest regards

 

RoscoPc

 

 

Terms & ConditionsAccessibility statement