University bursary. Help!

Dear accountancy gurus,

I would really appreciate it if you could help me with the following:
A member of my staff is doing university course which is work based and the uni is funding this course. I should receive 10 installments of £700 each over 10 months period. The money basically should pay for supply cover while she is on specific trainings, travel costs, online courses etc. Can anyone explain to me please what journal entries I should make. Any ideas? Please!

Your course of action depends to some degree on the nature of your arrangement with the university. Will they pay to reimburse costs already incurred? If so, the new Disbursements tab might be suitable. Are they contractually obligated to pay you the 10 installments? If so, you might create a receivable note account and allocate the payments to pay down their obligation. Are they just going to pay you each month assuming the course work continues? If so, simply receiving money into a bank account could work.

No matter how you receive the payments or where you allocate them, it would probably be a good idea to create an expense account for the university course so all expenses can be clearly accounted for.

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Dear Tut, thank you for your reply. According to the agreement the Uni just going to pay me each month assuming the course work continues. I have received first three installments and to be honest put them as Grant (debit - bank account, credit - Grants and Subsidies (income)), however I have big doubts.
I already have “Trainings” tab in Expenses as certain staff’s trainings are statutory requirements, so I thought to credit it when I receive money and debit it each time expense occurs, such as petrol cost to and from the placement, cost of the supply cover, tutor’s invoices, additional trainings. Or as you suggest should I create a separate Teacher training tab and simply play with it all 10 months?

Upon receiving
Dr: Bank
Cr: Staff Development Grant (income)

Upon paying expenses
Dr: expense account ( you could have many expense accounts just prefix them with ‘Tr.’ for training. e. g. ‘Tr. Travel expenses’
Cr: Cash/bank.

Brilliant! Thank you Abeiku.

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Now preparing my Profit and Loss Statements for 214/2015 tax year and for the school academic year Sep 2014-July 2015, I have a question about this Grant. The grant sits in Income but I have not used all the money yet as certain trainings will occur only during the next academic year. To show Net Profit/Loss for a year should I deduct the total amount of a grant received from the ‘Total income’ and to deduct the expenses already occurred (such as trainings, petrol costs with a special prefix as Abeiku suggested) from ‘Total Expenses’? Or I am not allowed to do it?