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?
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
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
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.
Same difference- I still believe it should be a liability
Its a liability NOT an asset. For pity's sake.
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