Finacial Assistence from Fund

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SAM KOSHY (Querist)
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25 February 2008 Financial Assistance in the form of cash
(non -returnable) + agency service from a *government fund to a private company for
office automation ( software installation).

We can account this cash as miscellaneous income in P& L A/c.

How we will account this income in other ways?

How it will b/f in the next fiscal year ?

( *Not from Indian Govt. but from a middle east country ministry)

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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25 February 2008 Please clarify how are you treating the office automation in your books.

SAM KOSHY

SAM KOSHY (Querist)
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25 February 2008 stationary exp, Office automation & computer repairs& maint etc are trating as indiect exp in P&L.

How we will account financial assistance ( non returnable) from govt fund.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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25 February 2008 If you are charging off the automation expenses in P&L, show the amount contributed by the outside agency as recovery thereagainst. The net will be the charge to P & L.

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