Real Estate
Tenant Deposit Partially Forfeited (Damage)
Retaining part of a tenant's deposit to cover the cost of repairs after they vacate.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Tenant Deposits Payable | Liability (-) | 10,000.00 | - |
| Cash / Bank (Refunded) | Asset (-) | - | 7,000.00 |
| Other Income (Forfeited Deposit) | Revenue (+) | - | 3,000.00 |
💡 Accountant's Note
If a tenant causes damage, the cost is recovered from the deposit. The retained portion is recognized as Other Income since the obligation to refund is extinguished.
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