alleryStart learning →A revenue grant refund exceeds the deferred credit. The excess goes where?
ADeferred indefinitely
BAdded to asset cost
CCredited to reserves
DCharged to profit and loss
Answer & Solution
Correct answer: D. Charged to profit and loss
The balance beyond the deferred credit is charged immediately to the profit and loss statement.
Keep practising AS 12 Accounting for Government Grants
Browse all AS 12 Accounting for Government Grants questions for CA Inter, or explore more Accounting topics.
Related questions
Rs 8 lakh grant on land, no obligations, deferred income method. Capital reserve credit?Rs 2 lakh asset grant, deferred income, 8-year life. Yearly P and L income?Capital reserve of Rs 25 lakh from a promoters grant; Rs 5 lakh refunded. Reserve left?Asset book value Rs 6.4 lakh rises by a Rs 2 lakh grant refund; 8 years remain, SLM. YearlRevenue grant refund Rs 2 lakh; unamortised deferred credit Rs 1.5 lakh. P and L charge?Rs 4 lakh revenue grant offsets training cost incurred evenly over 4 years. Yearly income?Rs 6 lakh land grant carries obligation costs charged evenly over 5 years. Yearly credit?Rs 3 lakh grant, 5-year asset, SLM. Deferred income balance after 2 years?