It's a liability until you earn it out or otherwise no longer have to
refund it. So you receive it as debit cash and credit a liability.
Eventually, when you earn it out, you debit the liability and credit an
income account.

On Tue, Feb 10, 2026, 18:47 <[email protected]> wrote:

> Hi,
>
>
>
> I have cash in a bank account that is a refundable deposit. I want to
> report
> it in the bank account but not as an asset (until such time it is not
> refundable).
>
> Could anyone tell me the correct general journal to create?
>
>
>
> Thanks
>
>
>
>
>
> Jim
>
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