Real Estate

Tenant Security Deposit Received

Recording a refundable security deposit paid by a new tenant at lease commencement.

Account NameTypeDebit ($)Credit ($)
Cash / BankAsset (+)10,000.00-
Tenant Deposits PayableLiability (+)-10,000.00

💡 Accountant's Note

Security deposits are not income. They are liabilities because the landlord must return them at the end of the lease if the tenant has not caused damage.

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