Hello Atif Khan,
You can treat the advanced security deposit as retainers.
This process allows you to add a deposit in a holding account (liability). You also have the option on when you want to affect the amount on the customer's current balance. I have this article that has the details in managing retainers.
You can run a quick report on for the advanced security deposit account to check it from time to time. Just open the Chart of Accounts from the List menu or use the keyboard shortcut CTRL+A. Then, select the account and press CTRL +Q. You may sort or filter the report by customer name.
I would also recommend to confer with an accountant for further insights.
You can always reach out to us if you need anything else.
