Regarding not for profit organisations

Rahul Walame (Chartered Accountant) (580 Points)

15 October 2012

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Rahul Walame (Chartered Accountant) (580 Points)
Replied 16 October 2012

SOMEBODY PLEASE REPYL TO MY ABOVE QUERY.

know your self (knowledge is power of student) (98 Points)
Replied 17 October 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.

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