Refundable security deposit entry

A/c entries 40028 views 10 replies

Is refundable security deposit considered as an accounts receivable or current asset in the balance sheet??? Suppose i pay 8000 security deposit which is refundable at the end of my contract. what will be the related entries.

Replies (10)

Hello,,

If the Contract period is more than one year then show it under "Long Term Group" or else "Short Term"

Security deposit is not treated as an Account Receivable.  It's treatment as a Current Asset or Long Term Asset in the Balance Sheet depends on whether this is receivable within 1 year from the date of Balance Sheet or not.  If it is receivable within 1 year, then treat this as a Current Asset otherwise Long Term Asset.

Journal entry is      Security Deposit A/c           Dr.

                                      To Bank A/c

 

You can visit my site for videos on Accounts for XI, XII and CPT.  You can also post your doubts/queries on www.jbsclasses.in

Dear ravi

Mr.Jag Bhushan Sharma's reply is solid

Dear ravi

Mr. Sharma is right ans.

Thanks sir

 

kkjjjjjjjjjjjjjjjjjjjjjjjjjjkkkkkkkkkkkkkkkkk

I would like to know more about security decposit. can you help me?

Yes treat as a Current Asset

 

think from institution point of view, After depositing the Caution deposit we made entry under Current liabilities, after expiry of term students havent taken back the deposited amount. what the Institute should treat that amount?

Dear Sir

We are receiving Deposit from distrubutors as per it act interest is applicable, if applicable which section

Halaswamy K M

9844362179

 

I would like to know security return  entry plz help 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 14 March 2026
Article Trainee

N N V Satish&co

Hyderabad

CA Inter

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details
Company
Featured 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 12 March 2026
Customer Relationship Executive

TAXLET

Calicut

B.Com

View Details