Account 275 – Deposits and guarantees paid
Posted: Tue Feb 11, 2025 8:13 am
Account 275 – Deposits and guarantees paid , belongs to class 2 of the General Accounting Plan (PCG) , it is dedicated to recording the sums paid by a company as guarantees. These amounts, often temporary, serve as a guarantee in the context of specific contracts, such as rentals or subscriptions, and generally remain immobilized until the return or the end of the contract.
Account 275 – Deposits and guarantees paid
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Account 275: What is it?
Account 275 – Deposits and guarantees paid belongs to class 2 – Fixed assets of the General Accounting Plan . It is used to record the sums deposited by the company as a guarantee in the context of contractual obligations. For example, this could be a security deposit for rented premises, a guarantee for an energy contract or a bank guarantee.
The amounts entered in this account represent financial fixed assets , as they are intended to remain in the company for an extended period, often until the end of the contract concerned. Once the commitments have been met and the guarantees released, these amounts are reimbursed to the company.
Rules for account 275Nature of deposits and guarantees
This account records amounts deposited as collateral in various contractual contexts, such as commercial leases, subscriptions, or other contractual commitments requiring collateral.
Amount and duration
Amounts deposited as security must be debited from account 275 when paid, and are credited when these deposits are returned to the company or offset. In general, these amounts remain immobilized for several accounting periods.
Accounting for possible interest
If a deposit generates interest (for example, in the case of regulated deposits with financial institutions), this must be recorded separately in a financial income account, such as account 768 – Miscellaneous financial income .
Provision for possible losses
Finally, if the return of a deposit is compromised (due to litigation or non-compliance with commitments for example), a provision for depreciation must be made in the appropriate accounts, such as account 2965 or 6816. This makes it possible to adjust the book value of the deposit and better reflect the real situation.
Our practical examplesExample 1: Security deposit for a commercial lease
Your company rents a commercial premises and pays a security deposit of €5,000 . This amount is refundable at the end of the lease contract.
Account 275 – Deposits and guarantees paid
Did you know?
Indy supports independent workers in their accounting management! No need to master chinese overseas europe data the PCG by heart, we take care of classifying your transactions in the right accounts.
I'm signing up for Indy
Account 275: What is it?
Account 275 – Deposits and guarantees paid belongs to class 2 – Fixed assets of the General Accounting Plan . It is used to record the sums deposited by the company as a guarantee in the context of contractual obligations. For example, this could be a security deposit for rented premises, a guarantee for an energy contract or a bank guarantee.
The amounts entered in this account represent financial fixed assets , as they are intended to remain in the company for an extended period, often until the end of the contract concerned. Once the commitments have been met and the guarantees released, these amounts are reimbursed to the company.
Rules for account 275Nature of deposits and guarantees
This account records amounts deposited as collateral in various contractual contexts, such as commercial leases, subscriptions, or other contractual commitments requiring collateral.
Amount and duration
Amounts deposited as security must be debited from account 275 when paid, and are credited when these deposits are returned to the company or offset. In general, these amounts remain immobilized for several accounting periods.
Accounting for possible interest
If a deposit generates interest (for example, in the case of regulated deposits with financial institutions), this must be recorded separately in a financial income account, such as account 768 – Miscellaneous financial income .
Provision for possible losses
Finally, if the return of a deposit is compromised (due to litigation or non-compliance with commitments for example), a provision for depreciation must be made in the appropriate accounts, such as account 2965 or 6816. This makes it possible to adjust the book value of the deposit and better reflect the real situation.
Our practical examplesExample 1: Security deposit for a commercial lease
Your company rents a commercial premises and pays a security deposit of €5,000 . This amount is refundable at the end of the lease contract.