[GNC] How to treat accommodation security deposit

[Edward Bainton]

If no need for anything official, this is probably moot, but

I would guess it depends on your jurisdiction. In the UK I understand the
security deposit to be a contingent asset: it's not your property, although
it's in your possession and you may become entitled to it at some future
date. (This also is more or less moot, because it's now mandatory in the UK
to place the deposit with a licensed deposit holder - but that doesn't
change the underlying legal basis afaik.)

It probably ought to be kept segregated from your other funds therefore, as
it's property held on trust.

This may affect the accounting treatment? I'd be interested to know - but
only out of interest: it doesn't affect me personally.

On Sun, 22 Nov 2020 at 10:46, Doug <lemans4 at internode.on.net> wrote:

> Tony,
>  I am no Accouintant, but the way I would attack it is to set up a cash
> account for the bond (security deposit), then split the payment into bond &
> rental (into another account, or as a Draw).
>  When the bond is returned, that credits into the bond account, hopefully
> leaving it at zero balance. (hint: the account can then be hidden if you no
> longer need to see it)
>  I also have old ´sleeper´ accounts: a hidden main account zzzz (bit
> obvious: a snooze!) then drop old unused accounts into that main account.
> Keep safe!
> regards, Doug (in sunny, relatively covid free Australia)
>
>
> On Sun, 22 Nov 2020 15:29:36 +0700
> Tony Vanson <tonyvans70 at gmail.com> wrote:
>
> > Hi all,
> > Using Windows 10 Home
> > GC 4.2
> >
> > I anticipate renting a property for 1 month and will pay the rental up
> > front plus a security deposit amount which will be returned at the finish
> > of the rental period. I am totally in the dark how to approach this.
> > Do I need some kind of split? The rental expense is a straight forward
> > expense, but how do I input the security deposit - I tried it as an asset
> > but that didn't work and doesn't seem right. Various other things i tried
> > usually came up with an Imbalance entry.
> > I would really appreciate some guidance on this.
> > Cheers
> >
> > --
> > *Tony Vanson*
> >
> > *The older I get,*
> > *the better I was*
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> --
> Doug <lemans4 at internode.on.net>
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