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Government Grant example in opentuition

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Government Grant example in opentuition

Viewing 4 posts - 1 through 4 (of 4 total)
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  • December 6, 2018 at 5:32 pm #488051
    kennigara
    Participant
    • Topics: 193
    • Replies: 250
    • ☆☆☆

    could you give repayment of journal entries or double entries of government grant in opentution example?

    separately related to asset and related to income method?

    December 7, 2018 at 9:14 pm #488341
    P2-D2
    Keymaster
    • Topics: 4
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    • ☆☆☆☆☆

    Hi,

    In both instances you would CR Bank, and then the DR will depend on the accounting policy choice. If you use the asset method then you would DR PPE and if it is income then you would DR Deferred income.

    Thanks

    December 7, 2018 at 9:50 pm #488345
    kennigara
    Participant
    • Topics: 193
    • Replies: 250
    • ☆☆☆

    I also encountered such double entry
    related to asset
    Debit PPE
    Debit DI
    Credit liability

    Related to deferred income
    Debit DI
    credit cash/receivable
    credit p/l

    i confused that is why asked.could you calrify it please?

    December 17, 2018 at 5:53 pm #492123
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7180
    • ☆☆☆☆☆

    Yes, you’re second entry is descried above, but I’m not too sure about the first one you mention, sorry.

    Thanks

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