Hi,
Generator purchased in the year 2012
At that time asset accounted as per the invoice total.
Now in 2014 received subsidy from the state government
Please help for the accounting treatment.
Ledgers to be created and their grouping ?
Private Ltd Co.
Thanks in advance
You have to reduce the cost of Asset by subsidy you received from Government. In your case you have received subsidy after 2 years so you have to reduce amout of subsidy received from WDV of Asset. If you have received subsidy more than WDV of Asset, excess amount should be credited to Profit & Loss A/c.
what about the depreciation reserve
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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