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Rent security journal entry

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what would be journal entry for rent security deposit with owner

&

what will be entry when we receive back rent security

what is head of buliding owner
Replies (3)
Quick Summary
Discussion on journal entry for rent security deposit. At the time of payment, Security Deposit (Current Asset) is debited and Bank is credited. On refund, Bank is debited and Security Deposit is credited. It is treated as an asset under �Security Deposit� or �Rental Advance� head.

Ledger Name : Rental Advance (current assets).
For payment -
Rental Advance - Rs. 100
To Bank Account - Rs. 100...

For receipts -
Rental Advance - Rs. 100
By Bank Account - Rs. 100

When you pay security  Deposit  entry will be 

Security  Deposit    A/c     Dr 

To  Bank                 A/c     Cr 

(  Security  Deposit  paid  for  rental  Home ) 

Security  Deposit  Account  under head  Current -Asset 

 

When  you receive back  entry will be 

Bank   A/c                               Dr 

To  Security  Deposit     A/c   Cr 

(  Security  Deposit  received ) 

 

Thank you


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