Keeping money to one side for a specific purpose

We are a small charity, using Quickfile very happily.

We are about to get a large (for us) donation which will be intended for a very specific purpose and won’t be spent for many months. The money will stay sitting in the Current Account at our bank, but I would like to be able to show it in our Balance Sheet as being set aside in some way.

Any bright ideas from anyone?

Hi Molemag,

If you want to create an item on the balance sheet, the easiest option is to go to your banking tab, then on side your should see an item called “new journal entry”. Use this to input the journal.

The journal would be the following:

2102 (other creditors) Description Credit XX
1200 (Current Account) Desciption Debit XX

I hope that helps. If you need anything else let me know.

I’m not molemag, but just read your response. Out of interest (and clarity), what do you mean when you say ‘go to your banking tab, then on side your should see?’ Grammar a bit odd here!..

Apologies for the confusion. I can’t write to save my skin. I was referring to points 1 and 2 on the image. Does that make it any clearer?

Kind regards,

Many thanks. And when we spend the money, or part of it, I assume we reverse the process AND debit the bank account with the payment in the normal way?

When the money is spent, you will need to credit the bank account (to reduce it), and debit creditors.

Thank you - yes I’ve thought about it more now, and I understand!

One more point - I assume I could create a new Nominal Account (under Assets and Liabilities) specific to the purpose of the money so that the entry on the Balance Sheet makes more sense to the Trustees? Rather than using 2102 Other Creditors?

If you are trying to show your annual accounts rather than just for bookkeeping purposing. I would recommend showing it as a restricted fund on your accounts or as a separate line as part of the income. Although I would need to have more detail to be able to advise you correctly on this.

An example of both showing restricted funds and separating income is page 18 of this document.

If any of that doesn’t make sense please let me know.

Kind regards,

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You could shift the money to another nominal code like this but if the money is not actually moving from your bank account in the real world then it means QuickFile’s view of your account will be out of sync with your bank statements until the money is spent.

Instead you could consider using the projects mechanism, and record the funds as an “adjustment” to the project. That way you have a record of which project the funds relate to, but they still appear in your main bank balance, making it easier to reconcile your statements. When the time comes to spend the cash you’d tag the resulting invoices to the same project, and the project reporting tools will show you how much you still have left to spend.


Thank you very much for the most helpful Model Accounts. Unfortunately, you may have opened a can of worms - I’m now beginning to wonder if I am keeping the accounts of our little charity as I should. However, we are in our first year and it’s not too late for me to rebuild them if need be.

My main worry is that the bottom half of my Balance Sheet is simply the P & L Account - rather than “The funds of the Charity”, restricted income or otherwise. The top half of our balance sheet I am happy with.

Maybe I need to re-classify our income somehow? I am very keen on using the “restricted Income” model. To give you an idea of scale, our total income for the year from all sources is likely to be about £22.5k.

I am also aware that I may be trespassing on your goodwill - please say if I am going too far!


Hi Matthew,

I am glad to help but there may be limits on how much I can say, due to HMRC know your client regulations.

However what I would recommend doing is splitting your P&L and balance sheet on to separate pages. The P&L should then have a “net movement of funds” which matches with the new imbalance on the balance sheet. You can then spilt out the income as they have done in the example.

Following on from that at the bottom of the balance sheet you could put a funds of the charity section. As you are in your first year this should be the net movement in the P&L.

In order to do this you have to create your statutory accounts outside of Quickfile, as I do not think they were built with the SORP in mind.

Hopefully this is clear but please let me know if this is not clear.

Kind regards,