Real Estate
Release of Contractor Retention
Paying the retained amount to the contractor after the defects liability period ends.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Retention Payable (Contractor) | Liability (-) | 50,000.00 | - |
| Cash / Bank | Asset (-) | - | 50,000.00 |
💡 Accountant's Note
Once the defects liability period has passed and the contractor has remedied all snags, the retention is released. This clears the liability with no impact on the asset value.
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