Out of a ₹150 lakh government grant credited to a Deferred Grant Account, ₹30 lakh related to machinery was refunded in March 2025 due to non-compliance. By that date, ₹7.5 lakh had already been recognised in P&L. What is the amount of Deferred Grant debited on refund per AS 12?

1. Step 1: AS 12 requires refund of grant to be applied first against the unamortised deferred credit. 2. Step 2: The full ₹30 lakh refund relates to the deferred grant balance attributable to machinery. 3. Step 3: Hence the Deferred Grant account is debited by the full ₹30 lakh on refund. _Source: ICAI BoS CA Inter Paper 1 Practice MCQ Paper (89270bos-aps3012-int-p1), Q.6_