Rental deposit

Software: MoneyWorks accounting software

When you rent an office space for your business, usually, you will be required to pay a rental deposit of 2 or 3 months of the monthly rental.

To record this transaction, first you need to create a new Rental Deposit account under the current Assets account type of account. Refundable deposit like Rental Deposit should not have GST, so you will need to change the GST code from G to *.

If a bill is given by landlord, then, you need to enter it as a Purchase Invoice, if not, a Payment transaction will be suffice.

In your transaction (either Purchase Invoice or Payment) window, fill in the transaction detail such as name of the supplier (landlord), date, cheque number, bank, etc. In the Account tab, select Rental deposit account and fill in the amount paid.

After transaction is posted, you can view the Rental Deposit account in your Balance Sheet report under the Current Assets section.

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