Deposits on Assets

by Ann Marie
(Coquitlam, BC)

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?

Ann Marie

image of fancy scroll lines

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.

P.S. I would like to remind you there is a difference between information and advice. The general information provided in this post or on my site should not be construed as advice. You should not act or rely on this information without engaging professional advice specific to your situation prior to using this site content for any reason whatsoever.

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