Accounting entry

(1)Bank          Dr.XXX

    To Govt Grant         XXX

    (Being receipt of Govt grant accounted)

On amount being paid to the respective agency,the amount needs to be transferred for the purpose of construction work from the Govt grant and the amount needs to reduce from total grant ledger balance.This would suffice as this would give a clear understanding of the amounts expended using Govt grant as grants are to be used only in respect of the project for which the amount was availed by the Govt.I hope ur clear.

Regards

Treat as deferred Income and trf the balance to PL