Short Term Deposits

mrskatecorby

Hello!

 

2 x Bank guarantee's were issued for our Company and allocated to Short term Deposits with a balance of $34,427.00

 

One of the bank guarantee;s has now been returned to us. How do i allocate the return of the BG and therefore reduce the balance of the Short Term Deposit account?

LRBooks61

Hi 

When the money comes in you need to receive the funds to the bank account

THe allocation is against the Short term loan accou nt for the original amount any additional amount should be recorded as interest

 

eg  short term deposit was $25000

Funds deposited 26750

Transaction :

deposit to bank 26750

allocation std $25000

Interest received $1750

 

Hope that helps

 

Lisa