Construction
Recording Retention Money in Construction
How to account for the percentage of payment withheld by a client until project completion.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Receivable (Net) | Asset (+) | 9,000.00 | - |
| Retention Receivable | Asset (+) | 1,000.00 | - |
| Construction Revenue | Revenue (+) | - | 10,000.00 |
💡 Accountant's Note
Retention is common in Jordan's construction sector. Even though you haven't received the cash, you recognize the full revenue and split the receivable into current and non-current (retention) portions.
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