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sir if grant is to be repaid at more then principal for example the grant is 100 and useful life of asset is 5 then after two year grant is 60 and 40 is amortized and recognised in profit and loss statement
but now we have to repay grant at 120 then entries are
DR deffered income 60
DR profit and loss 60(40+20)20 is additional payment on repayment and treated as loss
and recognised in P/L statement
CR cash/bank/payable 120
sir is my concept is correct and i am thinking right please suggest me i will be thankful to you for your act of kindnessWell, IF a grant were to be repayable at greater than the original grant, then I imagine that’s what the double entry would be.
However, I have NEVER, EVER heard of such a situation and it’s therefore most improbable that such a question / situation would be asked in the P2 exam
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