GOVT GRANT
This query is : Resolved
06 March 2020
DEAR SIR,
WHILE AUDITING CHARITABLE TRUST ACCOUNTS, GOVT GRANTS RS. 139680/- FOR BUILDING CONSTRUCTIONAL WORK FOR TRUST AND THE AMOUNT CREDITED TO TRUST BANK ACCOUNT. NOW MY QUESTION IS APART FROM THE GRANT RS 94496/- PURCHASED THE MATERIALS AND PAID LABOUR CHARGES. IN THIS SITUATION HOW TO TREAT GRANT AMOUNT. IT SHOULD BE SHOWN IN THE LIABILITIES SIDE OF THE BALANCE SHEET OR TRANSFER TO THE INCOME AND EXPENDITURE ACCOUNT. NEXT YEAR REMAINING GRANT AMOUNT OF RS.45184/- COMPLETELY UTILIZED FOR BUILDING CONSTRUCTION. HOW MANY YEARS GRANT AMOUNT SHOWN IN THE LIABILITIES SIDE OF THE BALANCE SHEET BUILDING IN THE ASSET SIDE OF THE BALANCE SHEET OR GRANT AMOUNT TREATED AS INCOME OF THE TRUST.
CLARIFICATION NEED URGENT HELP ME SIR
REGARDS
WHILE AUDITING CHARITABLE TRUST ACCOUNTS, GOVT GRANTS RS. 139680/- FOR BUILDING CONSTRUCTIONAL WORK FOR TRUST AND THE AMOUNT CREDITED TO TRUST BANK ACCOUNT. NOW MY QUESTION IS APART FROM THE GRANT RS 94496/- PURCHASED THE MATERIALS AND PAID LABOUR CHARGES. IN THIS SITUATION HOW TO TREAT GRANT AMOUNT. IT SHOULD BE SHOWN IN THE LIABILITIES SIDE OF THE BALANCE SHEET OR TRANSFER TO THE INCOME AND EXPENDITURE ACCOUNT. NEXT YEAR REMAINING GRANT AMOUNT OF RS.45184/- COMPLETELY UTILIZED FOR BUILDING CONSTRUCTION. HOW MANY YEARS GRANT AMOUNT SHOWN IN THE LIABILITIES SIDE OF THE BALANCE SHEET BUILDING IN THE ASSET SIDE OF THE BALANCE SHEET OR GRANT AMOUNT TREATED AS INCOME OF THE TRUST.
CLARIFICATION NEED URGENT HELP ME SIR
REGARDS
Guest
Guest
(Expert)
06 March 2020
AS 12 is applicable for non-companies.
There are two options, either reduce the cost of building in the balance sheet. Or credit the grant to deferred income and transfer to income in the ratio of depreciation charged periodically.
There are two options, either reduce the cost of building in the balance sheet. Or credit the grant to deferred income and transfer to income in the ratio of depreciation charged periodically.
06 March 2020
THANK YOU SIR,
WHAT IS THE METHOD REDUCE THE COST OF THE BUILDING.
REGARDS
WHAT IS THE METHOD REDUCE THE COST OF THE BUILDING.
REGARDS
Guest
Guest
(Expert)
06 March 2020
The building will be shown at cost less grant amount. If it is zero, then at Re. 1.
06 March 2020
THANK YOU SIR,
BUT ONLY SMALL DOUBT IN THE BALANCE SHEET TOTAL BUILDING VALUE IS SHOWN RS. 414280/- INCLUDING GRANT AMOUNT UTILIZED FOR CONSTRUCT BEFORE THAT GRANT BUILDING COST WAS 274600/- NOW IF THE GRANT AMOUNT REDUCED THE VALUE OF THE BUILDING NULLIFY THE GRANT FROM AMOUNT FROM LIABILITY SIDE OF THE BALANCE SHEET AND ASSET SIDE OF THE BALANCE SHEET IS THIS CORRECT
REGARDS ADVANCE
BUT ONLY SMALL DOUBT IN THE BALANCE SHEET TOTAL BUILDING VALUE IS SHOWN RS. 414280/- INCLUDING GRANT AMOUNT UTILIZED FOR CONSTRUCT BEFORE THAT GRANT BUILDING COST WAS 274600/- NOW IF THE GRANT AMOUNT REDUCED THE VALUE OF THE BUILDING NULLIFY THE GRANT FROM AMOUNT FROM LIABILITY SIDE OF THE BALANCE SHEET AND ASSET SIDE OF THE BALANCE SHEET IS THIS CORRECT
REGARDS ADVANCE
Guest
Guest
(Expert)
06 March 2020
Yes, the grant amount won't appear in the liabilities side.
07 March 2020
thank you sir your all replies
regards
regards
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