cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements

Reply to message

View discussion in a popup

Replying to:
Level 1

Recording part of the security deposit

Hi.

We are a transportation company and we take a security deposit from our drivers which we reimburse when they leave the company.

I created an account called  Drivers Security Deposits (other current liabilities) where I record the amount received from each driver for security deposit.

When they leave, sometimes we need to charge them for damages, repairs, etc.

My questions is how I should record the amount that we are not refunding, so the balance for the liability account to be zero? Should I use an expense account?

Thank you!

 

Need to get in touch?

Contact us