dear cci members,
greetings for the day!
- I have query about govt.grant. am doing one govt. company (hospitalitity) internal audit and company has received grants towards consrtuction of buildings.
- GOI issued grants and the comapny has received & deposited into one account that to OD account of the company.
- And the company is using the OD account for regular business expenses and contractors towards building construction.
- few building constrcutions completed without saficient grants and shortage amount paid through bank OD account.
- company recevied different types of grants and accounted in books of accounts under one ledger.
- as per my view those grants are capital nature and comapny suppose to open separate account for respective grant and deduct utilisation of grant amount from the same.
- please clarify my doubts as soon as poosible and give full information with examples for partaining to the govt grants.
Thanks in advance
CAclubindia
