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Post Info TOPIC: Rent deposit


Master Book-keeper

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Rent deposit


Client has paid a deposit on new business premises. What's the accounting treatment please?



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John

Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



Guru

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Leger wrote:

Client has paid a deposit on new business premises. What's the accounting treatment please?


Hi John

Is it refundable? If so I would treat as an asset on the balance sheet until it is repaid



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Doug

These are only my opinions of how I see things and therefore should not be taken as advice



Master Book-keeper

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Agree with Doug - sundry debtors.

(I assume its being held on a client account at t'other end! Just as an aside)

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Joanne

Fallows Hall Ltd

Winner - Bookkeeper of the Year 2015, 2016 and 2017

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.



Master Book-keeper

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Thanks Doug and Joanne

I've just come back from picking my sister up and the question was open on my comp. I thought to myself that's got to be a balance sheet item yet couldn't think for the life of me the answer when I asked.



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John

Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



Master Book-keeper

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Leger wrote:

I thought to myself that's got to be a balance sheet item yet couldn't think for the life of me the answer when I asked.


confusewinkbiggrin Its post January mind blindness!



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Joanne

Fallows Hall Ltd

Winner - Bookkeeper of the Year 2015, 2016 and 2017

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.



Master Book-keeper

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Do'h. It's a cash accounting one! It's not expenditure though is it as they will get the deposit back if/when they leave



-- Edited by Leger on Monday 3rd of February 2020 05:20:50 PM

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John

Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



Member

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Use it as an asset. Once the contract ends you can change it.

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Master Book-keeper

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RuskinF wrote:

Once the contract ends you can change it.


Completely and utterly wrong advice. IGNORE.



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Joanne

Fallows Hall Ltd

Winner - Bookkeeper of the Year 2015, 2016 and 2017

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.



Master Book-keeper

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In what way is it an asset?



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John

Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



Master Book-keeper

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Leger wrote:

In what way is it an asset?


Its money owed to your customer, so its a sundry debtor (asset).

Its the other half of the advice thats pants.

Plus 'use' it isnt exactly Accountant speak is it?!



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Joanne

Fallows Hall Ltd

Winner - Bookkeeper of the Year 2015, 2016 and 2017

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.



Master Book-keeper

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Ah sorry, I was thinking he meant a fixed asset. Yes sundry debtor I agree with. I wonder if he means once the contract ends, it removes the sundry debtor when you enter the refund?



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John

Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



Master Book-keeper

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Leger wrote:

I wonder if he means once the contract ends, it removes the sundry debtor when you enter the refund?


When the contract ends and when you receive the refund could be in completely different accounting periods. You might never get the refund.



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Joanne

Fallows Hall Ltd

Winner - Bookkeeper of the Year 2015, 2016 and 2017

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

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