Accounting entry
Joseph (AAO) (26 Points)
22 July 2016
Jiya Aggarwal
(Intern)
(53 Points)
Replied 22 July 2016
(1)Bank Dr.XXX
To Govt Grant XXX
(Being receipt of Govt grant accounted)
On amount being paid to the respective agency,the amount needs to be transferred for the purpose of construction work from the Govt grant and the amount needs to reduce from total grant ledger balance.This would suffice as this would give a clear understanding of the amounts expended using Govt grant as grants are to be used only in respect of the project for which the amount was availed by the Govt.I hope ur clear.
Regards
Praveen Tawania
(Owner)
(369 Points)
Replied 22 July 2016
Treat as deferred Income and trf the balance to PL