I am working with a 501C10 Fraternal Organization. We have slot machine income. The state Comptroller requires that we use half the weekly slot profits as charitable contributions. The other half is organization income.
What is the proper way to account for the restricted slot funds and the charitable pay outs?
The restricted funds are tracked and reported to the Comptroller annually, but the slot fiscal year is not concurrent with the organization fiscal year.
Other current liabilities and other current assets?

That part of the income which must be set aside becomes a liability with an offset represented by the cash in assets