Real Estate
Buyer Cancellation — Deposit Forfeited
Retaining a buyer's deposit when they cancel the purchase agreement per the contract terms.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Advance from Buyers (Deferred Revenue) | Liability (-) | 50,000.00 | - |
| Forfeited Deposit Income | Revenue (+) | - | 50,000.00 |
💡 Accountant's Note
When a buyer legally cancels and forfeits their deposit, the deferred revenue liability is released to income. The developer has fulfilled no obligation but is contractually entitled to keep the funds.
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