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The refundable component should be shown as liability on the balance sheet. While the charge to the owner and the cost of producing a new FOB would be shown as income and expense.
If, for example. it costs the OC $20 to produce to FOB and there was refundable deposit required of $200, then the OC most likely with charge the owner $220. Which may appear as
$20 (Credit) “Other or Key Income” on Income and Expenditure Statement
$20 (Debit) “keys / fobs expense” on Income and Expenditure Statement
$200 (Credit) “Security Deposits” in Liabilities on the Balance Sheet
As Whale says, the account names are dependant on your particular setup and may not need to be broken down too far. But I would say (IMO) it is essential that the refundable component is held in a Balance Sheet liability account.
JimmyT while you recommend “The best answer may be just to get a decent home and contents insurance policy and let them deal with it ” , whenever I have tried with insurance companies, if I am in a strata, they will only allow me to insure contents . In fact, I have tried to insure other attached items like kitchen cabinets, and I was not able to insure them, as the strata’s insurance is apparently meant to provide for this. Therefore, I do not see how an owner’s insurance would cover item like damaged cornices. Meanwhile if the cornice had fallen down and damaged the couch, then couch would be covered. Living in a strata I find these issues to be very confusing, sigh.