Blocked Bank Balances
Code: 1121
👁 Views: 122
Account Information
| Financial Statement | Statement of Financial Position |
| Normal Balance | Debit |
Definition
Cash balances held in bank accounts in the entity’s name but blocked or unavailable for unrestricted use because of banking, legal or contractual conditions.
Common Journal Entries
Payment of cash security deposit (e.g., rent or contract guarantee)
Dr. Cash Security Deposits
Cr. Bank Account
📐 IFRS vs US GAAP Accounting Treatment
IFRS
IAS 7
Statement of Cash Flows
US GAAP
ASC 230
Statement of Cash Flows
❓ Frequently Asked Questions
Q: Are cash security deposits refundable?
A: Yes, they are refundable upon contract termination or guarantee cancellation, provided no defaults or outstanding obligations exist.