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August 11, 2023
Question

JE for security deposits funds applied to repairs

  • August 11, 2023
  • 1 reply
  • 0 views

I'm trying to correct years of security deposit funds not being expensed for repairs. On the balance sheet, my security deposit bank account totals don't match the long term liability security deposit accounts. I need to debit the liability accounts but crediting the repair expense will decrease rather than increase the expense. Does anyone know the correct JEs to accomplish my goal?

1 reply

Rustler
August 12, 2023

The reason the JE credits the expense account, lowering the balance is that supposedly the expense was paid.  That would have credited the bank and debited the expense.  So the JE cancels the expense out.