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Refundable security deposit entry

RAVIKUMAR (STUDENT) (108 Points)

27 March 2013

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.

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10 Replies

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"

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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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1 Like

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?