Where is best to put a Security Deposit on the Balance Sheet?

Question asked by David Foster 7 years ago

We're moving premises soon and have to put up a big deposit against potential damage etc when we move out. (Previously they were small and I simply expensed these through P&L, but it's much bigger and needs to go on the Balance Sheet this time). My accountant says this should be recorded as a "current asset" or "prepayment", but I can't find anything close as a standard code in ClearBooks. Any views on where it should go? Should I just create a new code under "other debtors" (7503) or "Inventory" (7504) or even "cash" 7502?

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Hi David,

I would recommend creating a new account code "Prepayments" and assigning it is a "Current asset".

This can be done by heading to Setting > Accounting > Account codes, in the top left area of the screen you should find the "Create account code" option. Fill in the following form as required, then save it.

Thanks, Theo

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7 years ago

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