Recording part of the security deposit
Hi.
We are a transportation company and we take a security deposit from our drivers which we reimburse when they leave the company.
I created an account called Drivers Security Deposits (other current liabilities) where I record the amount received from each driver for security deposit.
When they leave, sometimes we need to charge them for damages, repairs, etc.
My questions is how I should record the amount that we are not refunding, so the balance for the liability account to be zero? Should I use an expense account?
Thank you!