Thanks for your quick reply but I'm thinking this is hopeless.
To tell you the truth, I have no idea what the bookkeeper did. I’m not sure how it could have anything to do with cash since our bank statements always agree with our deposits and expenses.
I can see in QB that there was an entry in the Asset Register in 2012 labeled security deposit receivable but no Payee name entered in the Payee Account column. I’m guessing the rental agency name should have been entered there.
Then 4 years later there is another entry in the Asset Register in 2016 for the same amount which would have been for the security deposit refund but this time there is the name of a client instead of the rental agency so to me it looks like income instead of a refund.
I really don’t want to go back through the books for 9 years to correct this old mysterious error since I know all income and expenses are correct and balanced and we are paying the proper taxes. I was hoping there was some kind of miscellaneous asset or liability section that I could use to correct this directly on the schedule L or M without changing the books.
On the other hand I will probably be closing the business in a couple of years and I guess it will get settled then. I always prefer to err on the side of paying too much in taxes than too little.
