Accounting for Rental Deposits

[Jayne]

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?

[Dean]

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]

Thanks Dean

[peugeot]

(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.