- This topic has 2 replies, 3 voices, and was last updated 3 years ago by
.
Viewing 3 posts - 1 through 3 (of 3 total)
- Posts
Hi,
You received a grant for a staff recruitment project. The grant totaled $120.000 in number. You spread the grant over 2 years. At the end of the first year, you have deferred income of $60.000. A government audit reveals that some of the conditions that they laid out have not been met, and you must repay $80.000 of the grant.What is the journal vouchers ?
Debit income statement 60000.
Credit liability to government 60000.Debit deferred income 20000.
Credit liability to government 20000.When repayment to government is paid-
Debit liability to government 80000
Credit bank 80000.- Topics: 1
- Replies: 7
- ☆
hi
why did you debit the income statement? its not an expense!
you should’ve credited it then debited the deffered income
cheers
Viewing 3 posts - 1 through 3 (of 3 total)
- You must be logged in to reply to this topic.