Saturday, August 6, 2011

Journal Entry for Refundable Deposit

How do you record a refundable deposit for an internet service in a double entry accounting journal?  What accounts should be used ?


Answer: 

Debit: Refundable Deposit $xxx
Credit: Cash $xxx

Also, You may appropriately indicate which corresponding account is affected, example, refundable deposit - internet or refundable deposit - telephone and similar accounts.

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