Government subsidy

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Professional
40 Points Joined October 2008

Hi,

A person is running A business and it had received Govt susbidy on total project cost.

As per AS-12, in case of company it can be shown as Capital Reserve.

However, what will be accounting treatmnet in case of sole preprietorship firm, whether it should be shown in Liability side of B/S only?

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On 22 February 2013 at 17:20 Report
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articleship
305 Points Joined January 2012

Hello,

is it monetary or non monetary,

 

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On 27 February 2013 at 16:24
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in my opinion,

 

it should be adjusted against CAPITAL ASSETS

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On 27 February 2013 at 16:39
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cakapilgoel.wordpress.com
2191 Points Joined August 2012

If it is monetary subsidy then,  it will be deducted from total Cost of assets and we will charge depreciation on net amount only.

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On 28 February 2013 at 17:48
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Professional
40 Points Joined October 2008
The subsidy is on total cost of project and is nt on particular asset. so I dnt think that it should be deducted from cost of machinery
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On 01 March 2013 at 12:00


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