Accounting & Bookkeeping & Small Business Forum

[Guest]

On property management of condo associations since they are classed as a non-profit org,the reserve account is a savings account set up as a cash account in the accounting software. Each month a check is written into the reserv account. The operating cash account is credited and the reserve savings account is debited.

They are showing on the balance sheet a liabilty account labeled general reserves. The way that they increase this account on a monthly basis to increasae the general reserve expense account and increase the general reserve liability account. ( note: they are doing this to show that the money in the reserves savings account is shown as a liablity on the balance sheet as well) i know that this is a part of "fund accounting" but showing it as a monthly expense is this correct

[Guest]

I think we may be missing part of the entry here. You mention a "monthly expense" in your last line, but don't say anything of the debit above. We could use some extra help here? If you're a student, feel free to call or email your coach.