Well… for reporting purposes this is not correct. You can do that the way you do it if you want, but the right way to record deposits is to create an accounts payable account for this sole purpose. You can create one and name it “Security deposits payable”, “Refundable deposits”, for example, and when you make an invoice you should affect this account so your payable should increase and when you refund the deposit affect this account again so your payable will decrease. You could use the suspend account but the downside using this method is that a suspense account is not payable, not asset, not income and not an expense, so for reporting purposes the account must be reclassified to the correct term. Also, another downside to use the suspense account is that you could have a bunch of transactions in this account that are not necessarily security deposits because maybe you forget to assign the correct account to one or three transactions and then the balance is not for the refundable deposits only. Creating an accounts payable account for this also gives you the possibility to see a history of your refundable deposits transaction in case you need one in the future. I hope this could help. Cheers!