Construction
Bid Bond / Tender Guarantee Deposit
Recording the cash margin paid to the bank to issue a bid bond when submitting a tender.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Restricted Cash (Bid Bond Margin) | Asset (+) | 5,000.00 | - |
| Cash in Bank | Asset (-) | - | 5,000.00 |
💡 Accountant's Note
A bid bond is a guarantee that the contractor will sign the contract if awarded the project. The cash margin is restricted — it is still the company's asset but cannot be spent until the bid bond is released.
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