dedwards
New Member

Investors & landlords

A security deposit held during a rental would be "unearned revenue", a current liability (if a one year lease).  If you end up keeping the security deposit, reverse the "unearned revenue" (by debiting the the current liability) and offset with a credit to rental income.  If you return the security deposit, reverse the "unearned revenue" (by debiting the the current liability) and offset with a credit to cash.