Accounting for Rental Deposits

JayneJayne Just JoinedPosts: 2Registered
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

  • DeanDean Experienced Mentor DevonPosts: 646Registered
    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:)
  • JayneJayne Just Joined Posts: 2Registered
    Thanks Dean
  • peugeotpeugeot Experienced Mentor Posts: 624Registered
    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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