Home > Accounting Entries > Assets > Financial Assets > Other Financial Assets
Definitions:
Other Financial Assets section in financial statements can comprise of various items which are realisable or refundable in cash but not able to categorise more closely in other line items. Few of the examples can be Refundable security deposit given to suppliers, Advance given to suppliers, Earnest money placed for new tenders and so on.
These kind of assets are recognised at amortised cost which is more or less equivalent to the cost or carrying value of the item.
Accounting Entries:
The below is an example of earnest money placed for applying tender:
Deposit of tender earnest money with the organiser:
Earnest money deposit A/c DR
Cash/Bank A/c CR
Amount: Actual value placed with the organiser.
Refund received from organiser at the end of tender:
Cash/Bank A/c DR
Earned money deposit A/c CR
Amount: Actual value received from the organiser