Deposits on Assets

by Ann Marie
(Coquitlam, BC)

Hi
Canadian Business

I just want to confirm that I am posting the transactions correctly.

A new asset was ordered in December 2010 and delivery will be sometime in June 2011. A deposit was required in order to place the order and paid in December 2010.

I set up a deposit-asset account and posted the deposit to that account. Did I do this correctly?

Thanks
Ann Marie

Hi Ann Marie,

You sure did! Whoop Whoop :0)

If it makes you more comfortable, you can find my example of journal entries for a deposit at Common Bookkeeping Entries.

If your deposit account is a current asset, your entry is definitely okay ... particularly if there is a year-end prior to receiving the asset.





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