Our company rents out some store rooms to our customers. The customers are required to place some deposits upon commencement of the lease and are expected to get back the deposits upon expiry of lease. How do I record these deposits?
In some cases, the customers may use part of the deposits to offset the rental. In this case, how can I record these transactions?
My husband is in a band. I have a check for $400.00 that I need to deposit, then split with the 3 other band members. How do I record & write check so that we show only $100.00 in income & not $400.00?
I wanted to clarify the proper way to post the deposits.
I am dealing with purchasing a new asset for a small corporation. The asset had to be ordered in advance and a deposit is required up front. Deposit was made in December 2010 and the asset will not be delivered until June 2011 (possession will be sometime in June 2011).
In this case, should I set up a new account for the asset and post the deposit to the asset account or should I set up a new account for prepaid deposits and post the deposits to that account?