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Tenants deposit protection scheme

A limited company has two residential investment properties which are rented out to members of the public. Their deposits have been put into the Tenants deposit protection scheme, should we just ignore this in the accounts as it is not the companies money, or should it be shown as an asset and liability?

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09th Aug 2011 14:08

Asset & Liability

I think that the landlord has a legal liability to the tenants to return their deposits and so this should be disclosed as such in the accounts.  Before the deposit protection scheme, the deposits would have sat in the company's bank account and thus, be included as an asset.  Now, the company should recognise the deposits placed with the protection scheme as a separate asset.

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