Accounting


Accounting Forum

AccountingCoach.com is the world's largest free online accounting course.


Not signed in (Sign In)

Categories

Vanilla 1.1.7 is a product of Lussumo. More Information: Documentation, Community Support.

Welcome Guest!
Want to take part in these discussions? If you have an account, sign in now.
If you don't have an account, apply for one now.

General Accounting Discussions: Security Deposit

Bottom of Page

1 to 2 of 2

  1.  
    • CommentAuthorTabatha
    • CommentTimeAug 15th 2007
     
    Where should I code our Security Deposit. Should I have a separate prepaid rent account. It is 41,028.00. I do not think it should be expensed all at once.
    • CommentAuthorCounter
    • CommentTimeAug 16th 2007
     
    If you paid a security deposit, I would open a separate asset account Security Deposit. If this security deposit will be returned at the end of the lease term, then none of the $41,028 should be expensed; only the monthly rent will be expensed. When the security deposit is returned at the end of the lease period, you will debit Cash and will credit Security Deposit.

    The party receiving the security deposit would open a liability account Security Deposits.

1 to 2 of 2

  1.  



 

Why AccountingCoach.com?

the accounting coach

AccountingCoach.com is designed to help people without an accounting background easily understand accounting concepts at no cost.


By investing thousands of hours, we have created clear and concise accounting information for both business people and students of all ages.


We understand how difficult accounting can be. That's why we have ensured that each accounting topic includes a clear explanation, reinforcing drills, Q&A, puzzles, dictionary of terms, etc.


Read 1,440 Visitor Testimonials



What's on AccountingCoach.com?