How to Record Seller Security Deposits
Records the collection of security deposits from new sellers to cover potential future claims or chargebacks.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Restricted Cash | Debit | 1,000.00 | - |
| Seller Security Deposit Liability | Credit | - | 1,000.00 |
💡 Accountant's Note
Cash received for security deposits is restricted and held as a liability until the seller leaves the platform or the deposit is applied against a loss.
Practitioner & Systems Framework
💻 ERP Architecture
Use separate sub-ledger for restricted cash accounts.
⚠️ Audit Flags
Commingling of restricted security deposits with operational cash.
📄 Required Documentation
Seller onboarding agreement and deposit receipt.
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