I am the owner of a property and I am looking to get into a partnership with 2 other partners. The intended rent is 15000 and deposit is 1lakh. How can I receive the security deposit of 1lakh and what shall be the entry in the accounts book? Also, can I show my capital investment in the form of the security deposit?
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Owner of a property is a partner
Replies (12)
Quick Summary
When a customer pays a security deposit, a business needs to record a security deposit liability. If the deposit is refundable within the a year, then the liability will be shown as a current liability, if not, then it should be shown as a long-term liability in the balance sheet.
Capital Investment may not be shown as security deposit
Capital Investment may not be shown as security deposit
Entry will be
Bank A/c Dr
To security Deposit A/c Cr
( Being security Deposit received ) .
Bank A/c Dr
To security Deposit A/c Cr
( Being security Deposit received ) .
As I have already said, business needs to record a security deposit liability
f the deposit is refundable within the a year, then the liability will be shown as a current liability
For receiving
Bank a/c dr
To Security Deposit a/c
For liability creation
Cash a/c dr
To security deposit liability a/c
Thank You for your answers.
| Originally posted by : Sourav | ||
 |
As I have already said, business needs to record a security deposit liability f the deposit is refundable within the a year, then the liability will be shown as a current liability For receiving Bank a/c dr To Security Deposit a/c For liability creation Cash a/c dr To security deposit liability a/c Thank You for your answers. Although I have one small question. Can the deposit amount be received in Cash(1lakh)? Or does it have to be paid via cheque or bank transfer only? |
|
Thank You for your answers. Although I have one small question. Can the deposit amount be received in Cash(1lakh)? Or does it have to be paid via cheque or bank transfer only?
U/s 269ST
Cash payment should be upto 10000 rupees in cash otherwise above 10000 rupees it should be in cheque, account payee bank draft, bank transfer etc. in a single day or in a single transaction.
Cash receipts is limited upto 200000 rupees otherwise above 200000 rupees it should be received in cheque, account payee bank draft or bank transfer etc. in a single day or in a single transaction.
Cash payment should be upto 10000 rupees in cash otherwise above 10000 rupees it should be in cheque, account payee bank draft, bank transfer etc. in a single day or in a single transaction.
Cash receipts is limited upto 200000 rupees otherwise above 200000 rupees it should be received in cheque, account payee bank draft or bank transfer etc. in a single day or in a single transaction.
Okay Sir.
But how shall I pay the deposit amount to myself, as I am the owner of a property but also a partner in the firm. It is decided as all 3 partners will have an equal contribution of the capital. So in this case, do I have to transfer my share of deposit as a partner(33000approx) in the firm's bank account and then again receive the amount from the partnership firm as a deposit by cheque or bank transfer?
Will that not lead to unnecessary bank transactions whereas the end result is going to be that I am paying the money to myself?
Option 1 may be the best option
Sir, I didn't get a clear idea. Can you please explain which option should I opt for?
The option may be that It is decided as all 3 partners will have an equal contribution of the capital. So in this case, do I have to transfer my share of deposit as a partner(33000approx) in the firm's bank account and then again receive the amount from the partnership firm as a deposit by cheque or bank transfer
Okay Sir. Thank You very much for your help.
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