Accounting for the rent bond

Hi group!

I was wondering what entry do I make for the money kept with my landlord as
bond for the room I'm renting. Do I just post it as an 'Mortgage/Rent'
expense for now and later reclaim it as 'Other Income' when I get the bond
money back? What do you people do in these situations?

All comments/suggetions are welcome and will be greatly appreciated.

Thank you
Regards,
Ady

PS. I have money 2005...

Dick
Thu Nov 16 20:26:06 CST 2006

Yours is one way.

I have a category called Miscellaneous : Deposit, Credit to Follow that I
use for both sides of transactions like this.

There is probably no one right answer.

"Adeel" <dontWantSpam@All> wrote in message
news:ecHtdMZCHHA.3620@TK2MSFTNGP02.phx.gbl...
> I was wondering what entry do I make for the money kept with my landlord
> as bond for the room I'm renting. Do I just post it as an 'Mortgage/Rent'
> expense for now and later reclaim it as 'Other Income' when I get the bond
> money back? What do you people do in these situations?
>
> All comments/suggetions are welcome and will be greatly appreciated.

Chris
Thu Nov 16 21:06:04 CST 2006

Alternatively, create a "bank" account in Money and deposit the money to
it. When you leave the apartment, transfer it to checking as deposit,
expense it to the last month's rent or as rental damages, or whatever. Just
reduce it to $0 to show you're not owed money any longer.

As Dick said, there is no one right answer.
--
Chris Cowles
Gainesville, FL

"Adeel" <dontWantSpam@All> wrote in message
news:ecHtdMZCHHA.3620@TK2MSFTNGP02.phx.gbl...
> I was wondering what entry do I make for the money kept with my landlord
> as bond for the room I'm renting. Do I just post it as an 'Mortgage/Rent'
> expense for now and later reclaim it as 'Other Income' when I get the
> bond money back? What do you people do in these situations?
>
> All comments/suggetions are welcome and will be greatly appreciated.

Adeel
Fri Nov 17 05:02:39 CST 2006

Thank you for your responses guys...

Yes, I suppose Dick's right but I think Chris's solution is a really smart
one. It makes a lot of sense to me...!


Thank you again guys
Cheers!

Dick
Fri Nov 17 07:20:32 CST 2006

One advantage to Chris's solution is that it will still reflect the deposit
as an asset of yours. This is generally a good thing.

"Adeel" <dontWantSpam@All> wrote in message
news:uwVkFgjCHHA.4992@TK2MSFTNGP03.phx.gbl...
> Thank you for your responses guys...
>
> Yes, I suppose Dick's right but I think Chris's solution is a really smart
> one. It makes a lot of sense to me...!