Rs 4 lakh revenue grant offsets training cost incurred evenly over 4 years. Yearly income?
ARs 2,00,000
BRs 4,00,000
CRs 1,60,000
DRs 1,00,000
Answer & Solution
Correct answer: D. Rs 1,00,000
Grant income is matched with the cost, so 4,00,000 over 4 years gives 1,00,000 per year.
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 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?Grant Rs 2 lakh, asset Rs 10 lakh, year-1 depreciation Rs 1.5 lakh. Grant income?