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.
RAVIKUMAR (STUDENT) (108 Points)
27 March 2013Is 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.
Prashanth
(Chartered Accountant)
(2322 Points)
Replied 27 March 2013
Hello,,
If the Contract period is more than one year then show it under "Long Term Group" or else "Short Term"
Jag Bhushan Sharma
(Faculty in a B-School)
(633 Points)
Replied 27 March 2013
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
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satish kumar Chauhan
(accountant)
(347 Points)
Replied 28 March 2013
Dear ravi
Mr.Jag Bhushan Sharma's reply is solid
Ramanuj
(Accountant.)
(834 Points)
Replied 28 March 2013
Dear ravi
Mr. Sharma is right ans.
Thanks sir
RAMANAND KUMAR
(ARTICLE ASSISTANT)
(21 Points)
Replied 16 December 2015
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Abid Pattappurath
(1 Points)
Replied 25 October 2016
I would like to know more about security decposit. can you help me?
SUNEEL KUMAR
(Sr. Accounts & Finance Executive)
(163 Points)
Replied 26 October 2016
Yes treat as a Current Asset
Siraj
(CA)
(22 Points)
Replied 15 February 2017
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?
halaswamy
(accounts manager)
(22 Points)
Replied 21 June 2017
Dear Sir
We are receiving Deposit from distrubutors as per it act interest is applicable, if applicable which section
Halaswamy K M
9844362179