Account Sub Account Account Name Receipts Disbursements $ X N/A Checking $ Bank Fees & Interest $ 55.00

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1 EXAMPLES OF ADJUSTMENTS A. To record a bank service charge (for example: monthly service fee, charge for new checks ordered or for an NSF (returned item fee (not the amount of the NSF check)). Bank Charge for printing new checks Rcrd chrg for new checks $ X N/A Checking $ Bank Fees & Interest $ B. To record interest earned. For the checking account - Interest earned this accounting period was $25. Record January interest earned - Checking $ X N/A Checking $ Bank Fees & Interest $ Do NOT Net out the amounts and post the difference. For instance; when posting examples A & B above, do not just post $30 ($55 - $25 = $30) in disbursements. However, you may combine these two entries into one adjustment and post monthly interest and service fees on the same adjustment, recording each of them as shown in the examples. C. To correct a posting error of a receipt. A cash receipt (C/R) posted to Adopt-A-Class (6-0050) should have been posted to the Adopt-A-Class/Gr. 3, Account (6-1003) Reclassify C/R # to correct account Adopt-A-Class $ Adopt-A-Class/Gr.3 $ D. To correct the amount of a cash receipt after the deposit has been made to the bank. The school receives notice from the bank that the deposit amount is incorrect. After researching you discover a cash receipt (C/R) was posted as $2.50 when it should have been $2.05. The account is Media Book Fair ( ). You will need to reverse the original entry and then record the correct amount. Correct/decrease the amount of C/R # $ X N/A Checking $ Media Book Fair $ $ X N/A Checking $ Media Book Fair $ 2.05 Appendix C Page 1 of 7 Revised 3/14/11

2 E. To record a cash receipt after the deposit has been made to the bank. The bank counted $20.00 more in cash than the amount recorded on the deposit slip. Research determines the account this money belonged to is Field Trip. This cash receipt has not been entered into the accounting system, but the money had been included in the deposit. To record additional cash included with the XX/XX/XX bank deposit. $ X N/A Checking $ Field Trip $ ) Once money/deposit has been finalized and gone to the bank, you cannot write a receipt to record funds that have gone to the bank or it will distort the total for the current deposit; it has to be an adjustment. (2.) If the source cannot be determined, it should be recorded to the Cash Over account ( ) noting the deposit date. F. To record unidentified cash shortage for a deposit. The bank has notified you that they had $5 less in a deposit than you had recorded on your deposit slip. Research and examination of source documents could not determine the reason. Undntfd 3/03/11 dpst shrtg DOCUMENTATION: Properly approved requisition form and notice from the bank. $ N/A Checking BOA $ Cash Over $ The account number has been changed from the bank fees ( ) to G. To reclassify an NSF check into the Accounts Receivable (A/R) account ($ ). The amount of the NSF check is $25.00, and the maker s name is J. Smith. Reclassify NSF check by J. Smith to A/R $ X N/A Checking $ $ N/A Accounts Receivable $ H. To write off an NSF check after every attempt has been made to collect it AND the check has already been reclassified into the Accounts Receivable account. The amount of the NSF check is $ It was originally credited to account , sub account Write-off NSF check J. Smith $ N/A Accounts Receivable $ Field Trip $ Appendix C Page 2 of 7 Revised 3/14/11

3 I. To write off an NSF check after every attempt has been made to collect AND the check has not been reclassified into the accounts receivable account. Refer to Chapter 3 Control of Cash Resources regarding procedures for un-collectible returned checks. The amount of the NSF check is $ It was originally credited to account , sub account 3440, makers name is S. Jones. Write-off NSF check S. Jones $ X N/A Checking $ Field Trip $ J. To re-classify an NSF check after the State Attorney s Office was successful in collecting and it is recorded in the system as an accounts receivable. The amount of the NSF check is $58. NSF Cllcted by stt Attrny frm Jane Doe $ N/A Accounts Receivable $ $-1111.XX N/A Checking $ Treat the check from the State Attorney s office as a redeposit. If however, the check from them includes fees that they also collected on your school s behalf, then write off the NSF check as detailed in example H and receipt the check as new money, with separate line items for the NSF check amount and the bank fee reimbursement. K. To reclassify the money held in a vocational deposit account to the actual tuition account. The deposit amount was $ and needs to be reclassified into the tuition account. Reclassify deposit money into the tuition account Advanced Registration $ Tuition-Adult/Genl/Res $ L. To reclassify the change fund money that was accidently included in the revenue from sales. The Book Fair receipts included the change fund of $50. Reclassify CR#, incldd chng fnd M Media-Book Fair $ $ N/A Change Fund $ To record an intra-account transaction (a purchase from one class, club or department to another). The science department purchased books from the book fair for $ Book fair purchases by Science Department Pre K-12 Science $ Media Book Fair $ Appendix C Page 3 of 7 Revised 3/14/11

4 N. To correct a posting error of a disbursement. The expenditure was incorrectly charged to the Ruth Eckerd F/T ( ) for admissions, instead of the Sea World F/T account ( ). Reclassify Voucher # to correct account O Ruth Eckerd Field Trip $ Sea World Field Trip $ To re-appropriate (share) expenses after the initial purchase has been made. The G/A account ( ) purchased postage stamps, knowing that some departments or groups would want to buy 100 count rolls for mailings. Re-appropriate expense DOCUMENTATION: Properly approved purchase requisition forms General Administration $ Yearbook $ Student Council $ This is not a purchase as such, it is a reassignment of expense from one account to another to reduce the original expense charged. P. To record a cash disbursement that was erroneously cleared from the accounting system. During the bank reconciliation process of clearing checks, a check accidentally was entered as having cleared the accounting system. Check number 32, to the Home Depot in the amount of $ must be reentered into the accounting system. Re-Rcrd ck # 32 accdntlly clrd frm accntng systm $ X N/A Checking $ General Administration $ This check will not appear on the Outstanding Check list generated by the accounting system and will have to be manually added to that list until it really does clear the bank. Q. To Reverse an adjustment. Reverse adjustment to M above. 1) To reverse an adjustment, use the same accounts, the same amounts, in the same columns (receipts/disbursements), and input a negative sign in front of the amounts. 2) If the amount in the original adjustment was negative, make it a positive amount in the reversing entry. 3) If the amount in the original adjustment was positive, use the minus sign in front of the amount in the reversing entry. Reverse Adj. # Pre K-12 Science $ Media Book Fair $ Appendix C Page 4 of 7 Revised 3/14/11

5 R. To record difference amount of a check to a vendor. There are two scenarios Scenario #1 The sponsor/teacher takes a $100 check to a vendor; Publix for example and the bill is $4.35 less than the check amount. The vendor gives the teacher change and the teacher submits the signed receipt and change to the bookkeeper. Take the following steps: 1) The $4.35 will be treated as a re-deposit into the bank. Do NOT write a receipt in the accounting system. 2) Create an adjustment to record the unspent money back into the bank account and the account from which it was taken as a disbursement. Adj CD # - chng given $ 1111.xx N/A Checking $ xx 0510 Adopt-A-Class $ NOTE #1: The check will clear the bank as $100 and you will clear it in the system for that amount. NOTE #2: A negative disbursement will result in the dollar sign balance to be increased which will correlate to the re-deposit. Brackets or minus signs under receipts or disbursements columns will have the opposite effect on account balances than a receipt or disbursement would have. Scenario #2 The sponsor/teacher takes a $100 check to a vendor; Wal-Mart for example and the bill is $4.35 less than the check amount. The vendor processes the check electronically for the lesser amount and gives the teacher the check back, usually marked void. The teacher submits the signed receipt and cancelled check to the bookkeeper. Take the following steps: 1) Note that the check will clear the bank as $ IMPORTANT REMINDER: Make sure that you clear the check in the accounting system as it was originally recorded - $100. 2) Create an adjustment to reduce the disbursement amount back into the bank account and the account from which it was taken. Adj CD # - cleared bank for a lesser amount $ 1111.xx N/A Checking $ xx 0510 Adopt-A-Class $ NOTE #3: Warn the teacher/sponsor that it is against the law for them to alter the amount of the check, especially if the bill should come to more than the check amount. Any minimal difference should be paid by them and then reimbursed through petty cash. Appendix C Page 5 of 7 Revised 3/14/11

6 EXAMPLES OF TRANSFERS A. To post a correction of a prior year s error. Revenues for the Book Fair were incorrectly posted to the General Administration account in the previous year in the amount of $ Reclassify Book Fair revenue from last school year Account Sub Account Account Name To From General Administration $ Media Book Fair $ B. To transfer money between cash accounts when opening a checking account. The old bank will issue you a bank check which you will treat as a re-deposit and this transaction should be entered into the accounting system. A new checking account was opened in the amount of $1, to cover start up costs. Open new checking account. Transfer of money Account Sub Account Account Name To From $1, N/A Checking $ 1, $1, N/A Checking $ 1, C. To close a club account that has been inactive for two years. The Young Astronauts Club is no longer active and has an outstanding balance of $ To close the Young Astronauts Club Account Sub Account Account Name To From Young Astronauts Club $ General Fund $ D. To close inactive Trust account. An Adopt-a-Class account did not spend all of its funds, the solicitation letter/brochure did not specify that unspent funds could be carried forward to the next year; the donor does not want the money back and has instructed you to keep the funds and use them at the principal s discretion. Close inactive Trust account Adopt-A-Class-Gr.3 $ Adopt-A-School $ Appendix C Page 6 of 7 Revised 3/14/11

7 E. To close an extension account(s) at year end. There are extension account balances that you want to clear at the end of the year, so that you can start with a zero balance for the new fiscal year. Close extnsn accnts to main accnt Banking fees & intrst $ Tele chrg/reimbrsmnt $ General Adminstrtn $ F. To move an amount from one account to another, such as a share of profits or donations. The Drama Department, in partnership with the Drama Club, presented a musical. All revenues were posted to the Drama Department. The following entry gives the Drama Club its share of the profits. To transfer Drama Club s portion of profits from the musical Drama Department $ Drama Club $ G. To reverse a transfer. A transfer transaction had been processed to correct a posting error. This should have been an adjustment, so now you have to reverse the transfer so that the activity will not show on the financial statement. Reverse TR # Adopt-A-Class $ Adopt-A-Class/Art $ When reversing a transfer, you must put a negative sign/symbol in front of the amounts as they were originally entered, to literally reverse the entry. Appendix C Page 7 of 7 Revised 3/14/11