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Mar 7, 2022 5:06 PM UTC
Question

I am renting a space. I paid first month and a security deposit The security deposit is not going to be refunded What category do i put this under in my chart of account?

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1 reply

LeithG
Mar 8, 2022 2:23 PM UTC

Hi khlrenos

 

When recording the initial security deposit, did you record it as an asset (accounts receiveable) or an expense?  If you have already recorded it as an expense, there is nothing left to do.

If you recorded it as an asset, then you'd want to post an entry to clear out the asset, and post it to your expense (rent expense makes sense).

Hope this helps!