Rental Bonds
What account type is best for Rental bonds?
I've currently got it in as "Other Current Asset"
However on the balance sheet the bond deposit amount is sitting as a negative. -$4,500
Can anyone enlighten me?
Comments
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If it’s money you have received from tenants it’s actually a liability, because one day you will have to pay it back. Change it to a liability and it will be a positive figure
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unless lease expires in next 12 months I would treat as a non-current asset
just read @Kris_Williams post. My comment assumes you had provided the deposit, whereas she had assumed you received the deposit- in which case definitely a liability. Current or non-current depends on the remaining term
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It's a deposit for a shop lease. So one of them paid $2000 and we hold it in trust until they leave the leased shop, could be in 2 years time or even more.
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It's a deposit for a shop lease. So one of them paid $2000 and we hold it in trust until they leave the leased shop, could be in 2 years time or even more.
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Same difference- I still believe it should be a liability
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