Accounting Treatment
This query is : Resolved
23 April 2008
What will be the accounting treatment for grants received by a PSU for making VRS payments?
24 April 2008
Refer AS 12 issued by ICAI relating to Govt Grants for clear understanding of the concept
29 April 2008
AS 12 does not give a clear view related to the VRS payment.
27 June 2008
Dear Sir,
As you have received Grant for Specific Pupose i.e. VRS Exp.
1.At the time of receipt
Bank Dr.
To Grant for VRS Exp.
2. At the time of making VRS Exp.
VRS Exp. Dr.
To Bank
3. At the time of the approval of such Exp. (If there is no provision for such approval you may direct dr. Grant A/c.)
Grant for VRS Exp. Dr.
To VRS Exp.
Balance of Grant A/c will be shown under Reserves & Surplus
4. If the Company has violated some conditions and has to repay the Grant.
Grant for VRS Exp. (By Amt. as per Book)
P & L A/c Dr. (By Balancing FIGURE)
To Bank
As you have received Grant for Specific Pupose i.e. VRS Exp.
1.At the time of receipt
Bank Dr.
To Grant for VRS Exp.
2. At the time of making VRS Exp.
VRS Exp. Dr.
To Bank
3. At the time of the approval of such Exp. (If there is no provision for such approval you may direct dr. Grant A/c.)
Grant for VRS Exp. Dr.
To VRS Exp.
Balance of Grant A/c will be shown under Reserves & Surplus
4. If the Company has violated some conditions and has to repay the Grant.
Grant for VRS Exp. (By Amt. as per Book)
P & L A/c Dr. (By Balancing FIGURE)
To Bank
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- Unregistered suppliers utility
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- ITDS U/S.194T of Firm
- Difference between Date of Payment and Date of Deduction?
- GST Rate for Catering Services
- FCRA 6 E- Intimation
- Journal entry of busniess expenses
- LIC maturity claim whether taxable
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
