How to Record Tenant Utility Deposits
Recording deposits collected from tenants to cover potential unpaid utility bills at the end of a lease term.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash | Asset | 150.00 | - |
| Tenant Utility Deposits Payable | Liability | - | 150.00 |
💡 Accountant's Note
Utility deposits are held as liabilities on the balance sheet until the lease is terminated or the funds are applied to outstanding utility balances.
Practitioner & Systems Framework
💻 ERP Architecture
Use a specific liability sub-account for utility deposits distinct from security deposits.
⚠️ Audit Flags
Failure to reconcile utility deposit accounts against individual tenant sub-ledgers.
📄 Required Documentation
Lease agreement addendum and receipt of deposit payment.
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