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    SVinc33060's Avatar
    SVinc33060 Posts: 1, Reputation: 1
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    #1

    Sep 26, 2008, 11:36 AM
    How to record Security Deposit and Last mo's rent
    I have received rent income from a tenant ($2250) for first, (750) last ,(750) and security deposit (750). How do you record this on the books for a company? I am not sure if I credit the Unearned income account at all or record a credit Rent Deposit $1400.
    Dr Cash 2250
    Cr Rental Income 750
    Cr Rent Deposit 750
    Cr Unearned income 750
    Thank you,
    Gekko's Avatar
    Gekko Posts: 347, Reputation: 77
    Full Member
    		  
    #2

    Sep 26, 2008, 01:30 PM
    Hey there

    I did do the Chartered Accounting thing. You've got the answer already. But there's more to the question than what you ask.
    Your company's accounting policy and any regulatory bodies that you have to report to define how you account for things and name them in the financial accounts.

    They are both liabilities, Not income, as you know.
    Keep it as you have I would think, but as I say, depends on who is looking at the accounts and the regulations that they can enforce on you to abide by. Their definitions and classifications is what answers the question.

    Hope that helps, even though I can't answer without knowing your company.
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