How to record AgriInvest contributions?
Alberta's AgriInvest Program
I was just wondering how to record the matching government contributions portion of the AgriInvest account.
The Producer deposits are easy enough as I can see that they come from the bank account, but what do I do when the deposit comes from an outside source such as the government?
Also, when I took over this bookkeeping engagement, the AgriInvest account balance didn't match up with the AgriInvest statement of account...what's the best way to fix that?
I don't know anything this program, nor do I specialize in bookkeeping for farmers ... and I'm confused when you say "I can see that they come from the bank account".
Every deposit to the company should show up in the bank account so it can be recorded to an account other than the bank (the opposite side of the entry). So for example, you would Debit Cash in Bank and Credit Some Other Account - usually an income account but deposits could also be loan proceeds or owner/shareholder contributions or employee reimbursement for personal use of company assets.
If you know how to record the Producer deposit, I'm not clear on why you would have trouble booking a "government" deposit. It's the same concept ... maybe just recording the deposits to different accounts.
Initially, after reading your question, I thought I would probably have an income account called AgriInvest Income where I would record all associated income from the program.
But then you made reference to an account balance/statement of account which suggests it may
be an asset account.
I took a quick glance on CRA's website. CRA's publication RC4060 suggests the program started in 2009.
To balance to your statement of account, you will need to go back in your records to see what is missing and where (i.e. what period). Then I would go back and check the deposits for that date to make sure the deposit was received and coded properly.
Of course, if the amounts received are recorded as income, your current year will only show money received in this fiscal year. You would have to go back to the income statements for prior years, since inception of the program, and tally up to see if this balances you.
Why? Income accounts are cleared to retained earnings / owner's equity at the end of each fiscal year. Only balance sheet accounts have cumulative / carry forward balances from year to year. Learn more about this by clicking here
That's your starting point.
As I am not familiar with this program and the accompanying paperwork, I have placed this in "Unanswered Questions". Hopefully other bookkeepers have experience with this and can help you out.
Sorry I couldn't be more help.P.S. I would like to remind you there is a difference between information and advice. The general information provided in this post or on my site should not be construed as advice. You should not act or rely on this information without engaging professional advice specific to your situation prior to using this site content for any reason whatsoever.