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sir iam confused you said for non depreciable asset we transfer the grant to capital reserve but in the end u said it can also be deducted from such assets cost and also sir for an free asset u said we need to give some nominal price and u can credit any unsensitive accounts right so is there any other possible accounts i can use it for this purpose other than depreciation Video Details ------------- P1 - Accounting Standards - CA Inter AS 12 #4. Grants for Specific Non-Depreciable Fixed Assets
Answers (4)
CA Suraj Lakhotia Admin
For non depreciable asset both approaches are allowed. You can use capital reserve account for nominal recording.
sir how would we pass the entry on cost reduction method here cuz the total asset cost is nill in that case right
CA Suraj Lakhotia Admin
If its nil, then record at nominal value.
ok sir so i would just go with capital reserve way then thanks sir doubt cleared
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