Suppose X Ltd bought a machinery for 400 lacs and after 3 years of purchase,govt decided to give a subsidy of 150 lacs.
Now,we know depreciation on this asset should have been on 400-150=250 lacs.
But,what would the company do in these 3 years? How will it claim depreciation in these years and also in the current year.
Depreciation and subsidy
Arka Bose (None) (313 Points)
11 November 2011