How to Record General Average Deposits
Accounting for cash deposits paid into a trust fund as security for cargo release following a General Average event.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| General Average Deposit Asset | Debit | 15,000.00 | - |
| Cash at Bank | Credit | - | 15,000.00 |
💡 Accountant's Note
When a General Average is declared, cargo owners must provide security (often cash) before cargo is released. This is recorded as a temporary asset until the final adjustment is calculated.
Practitioner & Systems Framework
💻 ERP Architecture
Set up as a Restricted Cash or Other Current Asset account in the ledger.
⚠️ Audit Flags
Verification of Lloyd's Form or General Average Bond documentation.
📄 Required Documentation
Average Adjuster's receipt, General Average Bond, and proof of payment.
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