Journal entry of security deposit entry in tally
Suppose a contract is signed for Taking a building on rent for Rs 30,000 per month and security deposits of Rs 100000 is paid .
Under such condition a journal entry will be pass in the books of accounts
Here Security deposit account need to opened which is current asset for us and the journal entry for the same will be
Security deposits A/c Dr 100000
To Cash A/c
(being security deposits paid )
Mr Akash received security deposit for rent Rs 100,000
In the above case the rent deposit is received from the party therefore after few days or a year Akash has to pay it to Pary its a liability for him .
The journal entry for the same will be
Cash A/c Dr 100,000
To Rent Deposit A/c 100.000
(being rent deposit received)
Now the contract with the