I need to know how to record a bank account closure. We are a non-profit so we have various income accounts in our chart of accounts, along with several banking accounts (checking and savings). We needed to close one of our bank accounts.
The bank closed the account by writing our company a check. We then deposited that check into another financial account.
I am not able to do a direct transfer, because the new deposit needs to go into the bank account and then into a specified income account.
The account we are closing is the transaction that I am having a difficult time with. I can obviously issue the check to our company, as the bank did (which is my credit entry), however I do not know what to use for my debit entry....usually we would use an expense account. This is not going to work in this circumstance. Therefore I am unsure what chart of account item that I would need to use in order to ensure our accounts will balance.
If you have any information I would appreciate any wisdom.
