Deposits on Rental Income

System
System Posts: 100,537 🤖 Admin 🤖
edited June 9 in General accounting discussion
Hi
Can anyone tell me how to deal with deposits and refund of deposits for rental income?
Do I include them as income and then deduct when they are refunded?

Many thanks
Sharon

Comments

  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Deposits on Rental Income

    Deposits received are normally shown as a creditor because they are refundable therefore, not income. Once they are refunded they are deducted from creditors.

    Kind regards
    Steve
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Deposits on Rental Income

    Thanks Steve.
    I think I was looking into it more than I needed to.
    I'm completing an SA for land and property only so won't need to show the creditors.

    Sharon
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Deposits on Rental Income

    Yes, that is all I do. I keep a separate record for deposits held (as a creditor) and if they are not returned in full, then that portion which is not returned is then added to the sales figure.

Categories

Privacy Policy