Clarification regarding subsidy received
This query is : Resolved
murali krishna
(Querist)
20 June 2012
One of my friend received a subsidy from APSFC. Total amount of APSFC Loan of Rs.20 Lakhs. Subsidy Received Rs.5 Lakhs. The same Rs.5 Lakhs has deducted APSFC directly into account. The subsidy is treated as income or not. What I am passing entry to the books of accounts.
Please suggest the same.
Thanking you Sir,
Please suggest the same.
Thanking you Sir,
Guest
Guest
(Expert)
20 June 2012
Dear Murali,
Subsidy is a Business Income so it shall be credited in P&L A/C.
1. Bank a/c Dr. 20 L
To Loan a/c 20 L
2. Loan a/c Dr. 5 L
To Subsidy a/c 5 L
3. Subsidy a/c Dr. 5 L
To P&L a/c 5 L
Subsidy is a Business Income so it shall be credited in P&L A/C.
1. Bank a/c Dr. 20 L
To Loan a/c 20 L
2. Loan a/c Dr. 5 L
To Subsidy a/c 5 L
3. Subsidy a/c Dr. 5 L
To P&L a/c 5 L
Message likes :
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CA PARAS BAFNA
(Expert)
20 June 2012
In case loan has been received for Building or Plant & Machinery, credit subsidy amount to the respective assets account.
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