Trade and other receivables - Non-Current
Money owed to you that will not be collected within twelve months, such as long-term deposits or staff loans, on the Balance Sheet.
In detail
Trade and other receivables - Non-Current holds amounts owed to the company that will not be collected within twelve months: a multi-year office security deposit, a long staff loan, a customer balance on an instalment plan running past a year. Keeping them out of Debtors stops the Accounts Receivable ageing from showing them as overdue and gives the bank an honest view of what is really collectable this year. Each year the part now due within twelve months is moved to the current receivable account by Journal Entry. Note the counterparty in the remark, since these rows carry no party. A deposit that is refundable at the end of a lease is the commonest case for a small business.
Formula
Balance = Deposits and loans due after twelve months - Portions moved to current receivables as they come due.
Accounting entry
| Account | Debit | Credit |
|---|---|---|
| Trade and other receivables - Non-Current | Rs 1,50,000 | |
| Bank Account (rename me) | Rs 1,50,000 |
How to record it in BRAccount
- 01Go to Invoicing > Journal Entry > New dated the day the deposit is paid.
- 02Debit this account and credit the bank for Rs 1,50,000; note the landlord and lease in the remark.
- 03Submit. The entry above posts for a three-year office security deposit.
- 04Twelve months before the lease ends, move the deposit to Advances and Prepayments by Journal Entry.
- 05When refunded, post a Payment Entry Receive from the landlord to the bank against that account.
When to use it
Post by Journal Entry or Payment Entry for deposits and loans due after one year. Short-term customer dues go to Debtors.
Example from the demo books
Dr Trade and other receivables - Non-Current Rs 1,50,000, Cr Bank Account Rs 1,50,000 for a three-year office security deposit.