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Pollyvdz
Level 1

Non-profit funds

The director of our non-profit transfers money from her personal account to the non-profit account when don't have enough funds to pay invoices. When we have enough in donations I try to transfer money back to her personal account. What accounts should be used, how do I record this?

3 Comments 3
Rustler
Level 15

Non-profit funds

The director is loaning money to the NFP, so that is a company asset account.  Use that asset account as the source account for the deposit

 

You pay back the loan by using that same asset account as the expense for the payment

Rainflurry
Level 13

Non-profit funds

@Pollyvdz 

 

I believe @Rustler intended to say that it's a liability account for the company, not an asset account. 

Pollyvdz
Level 1

Non-profit funds

A liability account sounds right to me. Recording these funds as a long-term or short-term loan hadn't occurred to me. Thank you for your input.

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