what will be the entry of Goods received as subsidy from organization.
For example I received 300 quantity of Seed from organization ( Free of cost)
What wil be the entry and And in which head will the ledgers come?
Please Help ASAP!
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Goods Received Entry
Replies (1)
When receiving free goods as a subsidy, you generally debit Inventory/Asset (at nominal or fair value) and credit either Capital Reserve (if it's a capital grant) or Deferred Income (if it's to be matched against future expenses). The specific classification depends on whether the grant is capital-related or revenue-related, as per your accounting policy and the relevant standards (AS 12 or Ind AS 20).
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