Treatment of subsidy

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Ayush Gupta (Querist)
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17 November 2014 what should be the treatment for if subsidy is already received by bank but not credited in company's A/C yet and interest for loan sanctioned is debited, deducting the subsidy amount from the entire loan.
please suggest entire treatment.

thanks.

Amol S Joglekar

Amol S Joglekar (Expert)
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17 November 2014 It will depend upon what type of subsidy it is.
Show subsidy separately under liability. Depending upon its nature, credit it to Capital account in case of proprietorship or partnership, and in case of company classify it under reserves and surplus

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