A partial deposit refund should be reconciled against the original recoverable balance and the actual settlement terms. A smaller bank receipt may reflect agreed deductions, a staged repayment or an unresolved dispute. Do not automatically write off the remainder simply because some cash has arrived.

Accounting records, calculator and glasses on a desk
Illustrative photograph by Cht Gsml.

Identify the original balance

Keep the deposit agreement, payment evidence, ledger account and relevant return conditions. Confirm whether earlier credits or deductions have already reduced the balance.

Distinguish a refundable deposit from an advance applied to an invoice. Give the accountant the actual terms if the original classification is uncertain.

Explain each deduction

Obtain the counterparty’s settlement statement and evidence for amounts retained. Identify which deductions the company has accepted and which remain disputed.

Keep an owner and next action for the unpaid balance. Do not classify a disputed retention as an approved expense merely because it appears on the counterparty’s statement.

Example: a refund arrives before the final inspection

The counterparty repays part of a deposit while further charges remain under review. Match the cash received and leave the unresolved amount visible. The first refund should not be treated as a final settlement unless the accepted terms support that conclusion.

Close using the reviewed settlement

Reconcile the original deposit, agreed deductions, refunds and remaining claim. Retain the approval for any settlement or write-off and the resulting accounting entries. Ask the accountant about relevant tax or GST questions where a deduction represents a separate charge. A completed bank reconciliation does not by itself resolve the commercial disagreement over the remainder.

Related practical guidance

For the surrounding records and responsibilities, see bookkeeping basics, company records to keep, bookkeeping and accounting.

Official guidance: IRAS official guidance.

Help with your company records

For accounting, bookkeeping and related compliance support, contact Raffles Corporate Services at [email protected] or WhatsApp +65 8501 7133. Tell us which records or process need attention so we can discuss the relevant next steps.