I received a security deposit from the place we rented space from. They deducted monies for carpet cleaning and painting. How do I record the check as I have the original security deposit as a liability

Thank you for visiting the Community page for the first time today, needylady. I can assist you in clearing the amount posted to your liability account for the security deposit and show the charges for repairs.

Since you received the security deposit back from your previous landlord, you can record the check as a deposit. To start:

1. Sign in to QuickBooks.
2. Click on the +New icon, then Bank Deposit.
3. Choose the bank you want to deposit the amount from the Account dropdown menu.
4. Go to the Add funds to this deposit section.
1. Select the liability account you use for the security deposit under Account.
2. Enter the amount.
3. On the second line, select an expense account for repairs and enter the amount in negative value. You may set up an account through the Chart of Accounts if necessary.
5. Save the transaction.

You can also run through the resources from this article for more hints on tracking bank deposits in our system: Record and make bank deposits in QuickBooks Online.

On the other hand, you may also consult an accountant for alternatives in clearing your liability account and posting the charges for repairs. 

I suggest getting back to this thread if you need further assistance while tracking security deposits in our system. It's always my pleasure to assist you again.

@Angelyn_T   Read the issue/ question for real this time.  They ARE the tenant.  THEY received their own security deposit BACK from the place THEY were renting.