As Grant accounting, donation or bequest I

In times of crisis like these, Albert Einstein said:

In times of crisis, imagination is more important than knowledge

But that's not true at all, since although the imagination is an important factor, so is the perfect knowledge of all situations that may lead you to make money and save costs in the Company, one of them know all subsidies which the Company may access and potential bequests and donations that may receive.

And that's going to try this post (and subsequent) of how to account for a grant, bequest or donation that the company can receive.

Indicate that the use of accounts shall be made ​​in the case of grants only, but in the same way you would if it were a gift or a bequest.

But before we get on accounting we have to distinguish between different types of grants, donations and bequests that the Company may receive:

1) Operating Grants: These are intended to offset operating losses of the business
2) Capital Grants: These are obtained by the fact I have made ​​the investment in fixed assets meetings, for example the purchase of a machine

Within the Capital Grants must distinguish in turn:

• Non-repayable grants: These are not to return, it receives and is already
• Repayable grants: are those that could potentially be be returned if they are not minimum conditions agreed to receive the grant

And after this brief introduction we can see how each of them counted, starting with the easiest: An operating subsidy

They are usually not refundable, and to see how this works imagine that today February 9 granted to E ª a government grant to the operation amount of 1,000 € to receive the amount of it on February 12 in our bank. The operation would be as follows :

Note: If for example the grant did not conduct an official body, and out of a private company, instead of the account (4708), we could use for example the account (440) Debtors.

This type of grant, donation or bequest, there is little mystery as you have seen, in the next post we will see capital grants that are a little more special.

Be happy

The accounting information of this post refers to the General Accounting Plan for Small and Medium Enterprises approved by Royal Decree 1.514/2007 of 16 November 2007 in Spain and apply from 1 January 2008.

If this is your first visit to the category of accounting entries of HelloWorld Blog I recommend reading this post (click here) where you will see the guidelines and how this type of post, and you can download if you want the general PGC PGC for small and medium enterprises as well as online consult.

Popularity: 55% [ ? ]