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office rent deposit

office rent deposit

Client is renting an office over a three year period.  Clearly, an operating lease.  Can someone advise accounting treatment for the initial depositon the property?

Should I apportion this and charge to P&L in accordance with the rental expenditure?  If not, what?

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17th May 2012 11:57

Treat it as

a refundable deposit.

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17th May 2012 12:06

straight to the balance sheet as an other debtor or something similar.

stays there until refunded.

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