fund for specail fund.
This query is : Resolved
14 January 2017
dear sir,
In govt department fund is receiving for specail purpose as well as salary and other office exp is also utilising from that. what will be accounting treatment while receiving the fund and transferring for specail purpose and for exp?
15 January 2017
Rahul, I think it would be a fair treatment to consider it as deferred income when the funds are received. Each time the related expenses are recognized in the P&L we could recognise the same amount as other income also.
15 January 2017
i welcome your suggestion sir.
Let me clear some more thing.
will deferred income treated as current liabilities?
At the time of receiving
Bank a/c .....dr.
To deferred Income...
at the time of transfer with respective department
deferred income a/c .....dr.
To Bank A/c
for expense
Exp.....dr
To bank A/c
and the same amount of exp I will transfer from deferred income
Deferred income a/c......dr.
To Other Income.
Rest amount of deferred a/c will be opening balance of next year.
Please correct me if I am wrong anywhere...
Let me clear some more thing.
will deferred income treated as current liabilities?
At the time of receiving
Bank a/c .....dr.
To deferred Income...
at the time of transfer with respective department
deferred income a/c .....dr.
To Bank A/c
for expense
Exp.....dr
To bank A/c
and the same amount of exp I will transfer from deferred income
Deferred income a/c......dr.
To Other Income.
Rest amount of deferred a/c will be opening balance of next year.
Please correct me if I am wrong anywhere...
16 January 2017
Deferred income as current liabilities - You should read the agreement between the parties to know the duration of spending the funds and classify it as current if its within one year or if its more than one year classify it as long term liabilities.
I thought all the fund will be received for spending for our expenses. Since that not the case don't use the term deferred income use some thing like "Special funds". All the entries are reasonable and rest of funds will be opening balance for next year
I thought all the fund will be received for spending for our expenses. Since that not the case don't use the term deferred income use some thing like "Special funds". All the entries are reasonable and rest of funds will be opening balance for next year
18 January 2017
Ok Sir, thanks for your reply and your suggestion will really work while implementing those thing.
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
- Refund Annexure-B
- Sale of Equity shares for Purchase of Residential Property
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- Liable to deduct tds and 44ADA
- Payment to foreign customer
- Is Interest applicable for payment made through credit ledger vide DRC03 for FY 2020-21 & 2021-22
- Subscription paid to foreign customer
- Non issue of e way bill
- ECO SUPPLY REPORTIONG IN GSTR-1
- Internship/Academic shown in Salary Pay Slip of a Doctor
- TDS PROCEDURE ON SALE OF IMMOVABLE PROPERTY BY NRI
- Refund of 20%pre-deposit paid for stay application
- ASISSE return under the provisions of the Collection of Statistics Act, 2008 (7 of 2009)
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
