Acconting of subsidy

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 October 2011 INCASE I AM MANAGING COMPANY ACCOUNTS AND MY COMPANY TAKES A LOAN OF Rs. 500000 AND FROM WHICH WE RECEIVE Rs. 100000 SUBSIDY WHAT SHOULD BE ACCOUNTING ENTRY TELL ME IN DETAIL WITH GROUPING INFORMATION

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
Follow

28 October 2011 1)if the subsidy amount adjusted to the loan account by the bank then
Bank Loan a/c dr 100000
To Asset a/c 100000
2)if the subsidy amount deposited as Fixed/Term Deposit by the bank then
Fixed/Term Deposit a/c dr 100000
To Asset a/c 100000

Alternative to above 1
Bank loan a/c dr
To Subsidy Received a/c
(Being subsidy received)
and
Subsidy Received a/c dr
To Asset a/c
(Being subsidy received amount written off to the Asset)
Alternative to above 2
Fixed deposit a/c dr
To Subsidy received a/c
and
Subsidy Received a/c dr
To Asset a/c

Or any other treatment depending on the method of accounting you followed for any clarification better to consult your CA.
OM SAI SRI SAI JAI JAI SAI

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now