Securtiy Deposit refunds vs. not

Hello… can’t find any info on how to handle security deposits that are not returned to tenant. Property shows a negative balance on account due to a non-returned security deposit last month. How should these dollars be reassigned that are retained for repairs?

Why was it not returned, that is important? If used for repairs, then you would debit “security deposit” and credit “repairs”. In short you need to debit (-) the security deposit so that it is “used” or “returned” on the Balance Sheet, Rent Roll report (and others). You would then apply this credit (+) to wherever the security deposit was used. When you have an expense from your repair company (or internal), there will be a positive balance in the “repair” category that is drawn down creating a zero-dollar repair.

Hope this helps.