Accounting for Rental Deposits

Jayne
Jayne Registered Posts: 2 New contributor ๐Ÿธ
edited June 18 in AAT member discussion
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?

Comments

  • Dean
    Dean Registered Posts: 643 Epic contributor ๐Ÿ˜
    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.

    Regards

    Dean

    (another 'is it income' thread...... see what happens this time :lol:)
  • Jayne
    Jayne Registered Posts: 2 New contributor ๐Ÿธ
    Thanks Dean
  • peugeot
    peugeot Registered Posts: 611 Epic contributor ๐Ÿ˜
    Dean wrote: ยป
    (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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