Real Estate
Rent Collected on Behalf of Owner (Agency)
How a property management company records rent received from a tenant that belongs to the landlord.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Restricted Cash (Tenant Funds) | Asset (+) | 1,200.00 | - |
| Due to Landlord (Payable) | Liability (+) | - | 1,080.00 |
| Management Fee Revenue | Revenue (+) | - | 120.00 |
💡 Accountant's Note
As an agent, only your commission (e.g., 10%) is revenue. The rest is a liability because you must transfer that money to the property owner.
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