I do the books for an apartment complex. We have 2 bank accounts, a checking and a trust account. Any security deposits collected have to be deposited into the trust account by law, and we also hold any prepaid rents in the trust account as well. For example, a customer pays for Jan-March rent in December of the previous year. Those funds would be deposited into the Trust account and transferred over to checking one month at a time as the rents are paid for that month. I currently have a prepaid rents in trust liability account set up but am not sure where to transfer those amounts into once they are allocated to that month's rent. Anyone have experience with property rentals who could help me? Let me know if anything doesn't make sense. Thank you!