Tenant Security Deposits Accounting Treatment

Hi Reese

Formerly, tenant deposits are treated as income when they

are received and expenses incurred when contract is terminated are

recognized in the month contract is terminated which may be far

apart.

The effect is income is overstated in the contract start and expenses

are overstated in the month contract is terminated. No liability is shown

for the amount of the deposit which is the real nature of the tenant

deposit.

So NOW, tenant deposit is recognized as liability. The liability is

recognized for the life of the rental contract. It is discharged when

the contract is terminated. Any amount incurred as expense in excess of

the liability is Bad Debts.

Journal Entry:

(1)Cash XX.xx

Rental Income XX.xx

Liability-Name of tenant-Deposit XX.xx

to record start of contract, receipt of deposit and advance rent

(2)Liability-Name of tenant-Deposit XX.xx

Accounts Receivable-Name of Tenant XX.xx

Bad Debts (if any) XX.xx

to record termination of contract,closing of tenant account

Adjusting entries were made to correct affected accounts.

Blogger since August 2007.

Linux user since 2004.

Fedora 23 Kernel 4.2 GNU/Linux

Comments

Mailvelope, Encryption for Webmail

Encryption is the topic of week. I wrote about it in a related post here. While encryption is a very good idea, doing it and doing it every day as part of your work flow is another thing. My view is that if you're already using an email client then it is easier, simpler and more convenient to adopt encryption. That is not the case if you're using a webmail service. If you are using the browser to check, compose and send your email, what are your options? The answer is: it's complicated. Looking for a way to do encryption with Google Chrome and Gmail, I found this. I also read that Google just released code for email encryption as open source. But it's a long way to being used by end users. The extension for Google Chrome works fine if the recipient also uses Google Chrome. But I went ahead and check this on Evolution.

Donald Trump Is The 45th President of the United States

and he is preparing to move with his transition team into the Oval Office. His election is a shock to many political observers and the world in general. Donald Trump, the president-elect, ran against Hillary Clinton, former Secretary of State and for many the most qualified candidate for the presidency in many years. This has led to many post election analysis of how this upset happened. The numbers of votes for each candidate and the comparisons with previous presidential elections point to the fact that the white vote for Mr. Trump is solid all throughout but the minority and black votes did not come for Mrs. Clinton. This is what happened in crucial States like Michigan and Florida. The Republicans kept Congress and the Senate. It is quite notable that Russia and in particular, Vladimir Putin, is happy that they are going to talk to Mr. Trump rather than Mrs. Clinton. It is also a ...

Webapps in Unity

So it has been 4 months since Ubuntu 14.04 came out. This is LTS and supported for 6 years by Canonical. The first mobile device with Ubuntu pre-installed is promised to come out later this year, 2014. It's time to check out how the apps perform so far. It is a good idea. I use Gmail and Twitter and Facebook. Why not a webapp in a desktop? So I start the Twitter and Gmail webapp. So far it has crashed my computer 6 times. Not a very good sign. On the other hand it does work but not as stable as opening them in Firefox. -- Use my PGP key if you want to encrypt your replies/messages to me. You are invited to also send me your PGP keys so we can communicate in private.

Danny's Space

Search This Blog