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Security deposit in tally

viraj machhar (7 Points)

23 October 2015

Our firm receives security deposit from customers and pass it on to the supplier company.

how do I show this in tally? which accounts to create? and which type of voucher entry?

thank you.

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12 Replies

(Guest)

can u give us some more information about your firm and what business u are engaged into

(Guest)

From the info u gave, security deposit u recieving should be accepted as a current liability

viraj machhar (7 Points)
Replied 23 October 2015

thanks for your reply.

I will try to provide detailed information .We have a Lpg distributorship.

Lets say we receive 2 cylinders from company(BPCL) for Rs 400 each (prices changed for clarity)

We sell 1 to an existing customer for Rs 500.

We sell 1 to a new customer at Rs 500 + Rs 1000 (security deposit)

now we deposit this Rs 1000 to BPCL.

now If i create 2 accounts - (1) security deposit from customers (liability) (2) security deposit to BPCL (asset). This two accounts will cancel out each other but still it will show on our balance sheet for a very long period of time as liabilities and assets.

(Guest)

Hi viral. U can make a current liability account "security deposit" U can credit it when u receive deposits from customers and debit it when u give it to the company

1 Like

Vikas Arora (Practicing CA) (31 Points)
Replied 23 October 2015

In my view both accounts should be maintained separately in tally. Netting off can be done while preparing financials.

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viraj machhar (7 Points)
Replied 23 October 2015

Originally posted by : Vikas Arora
	In my view both accounts should be maintained separately in tally. Netting off can be done while preparing financials.

how to net off?

(Guest)

Net off means u just pass an entry to close the balances..I. e debit balance to credit balance

RAJAT KUMAR JHA (CA ARTICLE) (26 Points)
Replied 27 October 2015

you should make a current liability a/c for security deposit and You should credit that when you recieve securities from customer and debit when you give the securities to company (bpcl). when you make separate entry then it would be complicated.

1 Like