Security Bond held
Hi,
My company holds bonds for childcare that are returned when they leave. Can you please tell me the correct recording of these amounts both receiving and returning and if they should be held in a separate Bank account.
Thanks,
Lorrie,
Interesting Post.
How many bonds do you have and how much is each Bond?
I would suggest a separate Bank Account.
I would have a Current Liability called Security Bonds.
This Bank Account would be agreed to a external system, that lists each Bond, on a regular basis.
There may be State Legislation that applied to the Security Bonds.
By example, Residential Bonds in NSW are held by the Rental Bond Board.
Duncan
