cancel
Showing results for 
Search instead for 
Did you mean: 

Reply to message

View discussion in a popup

Replying to:
Community Champion

Reply to message

It all depends on if you are holding the actual funds in a separate account or are just retaining the liability. A bank account IS a current assets account and current assets would include all cash or convertible to cash items on hand.  

What you did with sales receipts and the asset account is as if you received the funds and have the funds in a separate bank account.  If you do have funds on hand then you need to move them (transfer) from the SD asset account to banking.

If you are only holding the liability then the proper procedure would have been to "deposit" to owner equity if using the sales receipt approach (such that each tenant shows proper deposit)

Keep in mind that state laws differ and your state may require physical existence of funds in a separate interest bearing account and some states require that deposits be returned after a certain period of time and after that you no longer have funds on hand if the tenant trashed the place.

Need to get in touch?

Contact us