How should cash received as deposit by a univesity from students be treated accounting wise?
February 13th, 2010
| Tags: accounting, cash, deposit, from, received, should, students, treated, univesity, wise
It should go to unearned revenue and cash account. But should it go to a restricted cash account? Can the university mingle the funds in a general cash account? CPA only please….Thank you.
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If you consider it as an unearned revenue, then the university may definitely use it as general cash.
If it’s a deposit that can be redeemed or withdrawn, then that’s the only time you can take the conservative route of placing a restriction on the use.