Security deposit in tally

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

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.

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?

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.

exactly what i said.. and yeah thats true...multiple accounts are not needed

thankyou everyone for your suggestions. I have started the entries and found that both ways work but maintaining 1 account is easier.

but how i tally the ledger,