In real life, when a buyer and a seller conduct a transaction, the seller will generally ask the buyer to pay a deposit to ensure the realization of their rights and interests, and then return the deposit to the buyer when the transaction is concluded. How to deal with the accounts when paying the deposit? Let's get to know each other.

Accounting treatment of deposit payment

When paying the deposit, the payer will enter other receivables into the account, and other receivables will be added to the debit as the asset account. At the same time, due to the reduction of monetary funds caused by the payment of deposits, the reduction of assets should also be added to the lenders. The following entries should be made when paying the deposit:

Debit: Other receivables -XX unit (deposit)

Loan: bank deposits and other subjects.

Accounting entries for recovering deposits

Debit: bank deposit

Credit: other receivables

The difference between deposit and deposit

The security deposit refers to the money left by one or both parties to guarantee the performance of the contract or deposited in a third party. This concept has a wide range of applications, such as contract margin, performance margin in bidding, margin in futures trading and so on. There are two common forms of deposit:

1. In order to ensure the realization of their creditor's rights, the parties to the contract require the other party to provide a deposit;

2. When the contract is established, both parties shall deposit a deposit with a third party recognized by * * to ensure the performance of their respective obligations.

Deposit is a form of security interest, which means that the debtor or the third party gives the creditor a certain amount of money or equivalent to guarantee the performance of the debt. When the debtor fails to perform the contractual debts as agreed, the creditor may be paid in priority from the down payment.

Deposit accounting entry

1, payee's accounting treatment

After receiving the deposit:

Debit: bank deposit (cash on hand)

Credit: other payables

When the deposit is refunded:

Debit: Other payables

Loan: bank deposit (cash on hand)

When the deposit cannot be refunded

Debit: Other payables

Loan: non-operating income

2. Accounting treatment of the payer

When paying the deposit:

Debit: Other receivables-deposits

Loan: bank deposit (cash on hand)

After receiving the refund deposit:

Debit: bank deposit (cash on hand)

Loans: other receivables-deposits

When the deposit cannot be refunded:

Borrow: non-operating expenses

Loans: other receivables-deposits