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Accounting for Rental Deposits

JayneJayne Just JoinedRegistered Posts: 2
Can anyone tell me how I should account for rental deposits which will be repaid on the termination of the rental. Should the deposit be included in the income for the period in which is received?


  • DeanDean Experienced Mentor DevonRegistered Posts: 646
    Hi Jayne

    You would hold it on the balance sheet as a liability until it was repaid. If it doesn't get repaid you treat it as income when the tenant leaves.



    (another 'is it income' thread...... see what happens this time :lol:)
  • JayneJayne Just Joined Registered Posts: 2
    Thanks Dean
  • peugeotpeugeot Experienced Mentor Registered Posts: 624
    Dean wrote: »
    (another 'is it income' thread...... see what happens this time :lol:)

    Dean you are correct - rental deposits are definitely not income as they are refundable.
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