How to treat Received Subsidy
This query is : Open
31 December 2010
Plz tell me how to treat Subsidy Received due to export of Sugar.
it has been given by Sugar Mill to us because of purchase from him during the year, FROM THEA SAME MILL
it has been given by Sugar Mill to us because of purchase from him during the year, FROM THEA SAME MILL
31 December 2010
It should be treated as Revenue Income..
Other openion may also be solisited
Other openion may also be solisited
31 December 2010
Looks like this is a trade discount in which case you may reduce the cost of the raw material purchased and debit the sugar mill.
So the entry may be taken as
Sundry Drs ( Sugar Mill). Dr..
Purchases... Cr
So the entry may be taken as
Sundry Drs ( Sugar Mill). Dr..
Purchases... Cr
31 December 2010
MR vivek
please
tell me one more thing
if the transaction of purchase has been incurred 2 years back and we have paid the full amount to the party.
and if the same money is being realised after 2 years as subsidy than how we will treat the same money of subsidy.
please
tell me one more thing
if the transaction of purchase has been incurred 2 years back and we have paid the full amount to the party.
and if the same money is being realised after 2 years as subsidy than how we will treat the same money of subsidy.
01 January 2011
As the accounting period is completed and you cannot adjust the prior year discount in the current period expense, this will be taken to Other Incomes.
So the entries will be
Sundry Drs.... Dr
Other Income..... Cr
So the entries will be
Sundry Drs.... Dr
Other Income..... Cr
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- ITC temporary reversal and reclaim
- TDS U/S. 194NF
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- Applicable TDS rate for sale of property in Nov 2024
- Import license renewal
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
