Question: Recording Bonus Bucks

Our previous treasurer recorded Scholastic Bonus Bucks on Our Balance Sheet as an Asset as well as regular Scholastic dollars (I would think it should be an income), and I can't understand why. Can someone explain, or if they shouldn't be How do I clear them off?

Asked by Anonymous

Answers:

Community Advice

mum24kids writes:
If they are still sitting somewhere waiting to be spent, then yes, putting them in as an asset lets everyone know they are available to use. To get it on as an asset, she most likely had to debit assets and credit income, so did record it as income. Then when you spend the $$, credit the asset and debit whatever would be appropriate given what you spent it on--library program, reading incentive, summer books.