Customer Deposit Bookkeeping Question
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?
Customer Deposit Account
For a deposit in a customer deposit account what account would be debited and what account would be credited?
Depositing a Check That Needs to Be Split 4 Ways
(Glenwood Springs, CO USA)
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?
Deposits For New Assets
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 2022 and the asset will not be delivered until June 2023 (possession will be sometime in June 2023).
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?
Thank you for your assistance. Ann Marie
Old Deposit That Never Cleared
by Katrina Misthos
I have to deposits from previous years that have never cleared. I need to close the book for this year how do I get rid of them? Thanks
When an owner puts a cash deposit from his own funds into his business account, how do you record that?
I show the Deposit:
Account Code: "Owner Draw: Expense
Is this correct or should there be an Income column for this type of transaction?
What type of account are security deposits