knowledge is power of student
98 Points
Joined February 2012
In gerrnally govt grant is given to NGO for some specific purpose
some time if NGO is not able to fulfill some specific conditions
which attached to such grants then NGO have to return such grant to govt.
so jurnal entry will be
assets a/c................................................dr
TO deferred govt grant a/c
note:-grant should be credited to income over the periods
and as year passes depreciaation is also provided on such assests
result :- Net effect will be NIL ie. amt credited (apportioned grant) in P&L
and dr. (depreciation) in P&L will be same
If there is no condition attached and assets are non- depreciable then
grant amount sould be show as Capital Reserve A/c.