Security deposit withheld

I am puzzled at this transaction, so i hope that someone can shed some light on this.

I have a client who I have agreed with on a 5% security deposit that they will withheld from every payment on every invoice and pay the accumelated security deposit when the contract concludes (+2 years)

Here is an example:

I submit an invoice for $500,000
I get paid $425,000
Client withhelds $25,000 as 5% Security deposit

I use an online accounting system (Zoho Books) so I reconcile the accounts with my bank transactions.
How do I enter this security deposit seperately from my invoices? Do I create a seperate invoice for it?

Thank you

Replies (1)

We can reduce the amount in Debtor's a/c as follows

Security Deposit A/c    Dr:

To: Xyz (Debtor) A/c     Cr

(Being the amount with held by the client)

If you have more clients adopting the same policy you can open the Securtity Deposit a/c itself Debtor wise to indentify easily.

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 08 July 2026
Article internship

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
ARTICLESHIP 23 July 2026
Article

Gianender & Associates

New Delhi

CA Inter

View Details
Company
Featured 16 July 2026
Semi Qualified Company Secretary

Vakilsearch.com

Chennai

CS

View Details
Company
06 July 2026
Chartered Accountant (Indirect Taxation)

Gowra Ventures Pvt Ltd

Hyderabad

CA

View Details
Company
ARTICLESHIP 14 July 2026
Article Assistants

R Shyam and Associates

New Delhi

CA Final

View Details
Company
29 July 2026
ACCOUNTANT

ONESTEP GST SOLUTION

New Delhi

B.Com

View Details
Company
ARTICLESHIP 16 July 2026
Article Assistant

Sahil Agarwal & Company

Mumbai

CA Inter

View Details
Company
Featured 02 August 2026
Accounts Executive

Aashok F&C Advisory

Guwahati

CA

View Details
Follow