As record a grant, donation or bequest I

In times of crisis, like the present, Albert Einstein said:

In moments of crisis only imagination is more important than knowledge

But that's not true at all, because even the imagination is an important factor, so is the perfect knowledge of all the situations that may lead you to make money and save costs in the Company, being one of them know all subsidies which the Company may have access as well as the possible legacies and donations may receive.

And that is going to treat this post (and subsequent) of how to account for a grant, bequest or donation that the Company may receive.

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

But before we get into accounting matters we have to differentiate the different types of grants, donations and bequests that the Company may receive:

1) Operating Subsidies: These are intended to offset operating losses of Business
2) Capital grants: Those that are obtained by the fact that he made ​​the E th an investment in fixed assets such as the purchase of a machine

Within the Capital grants must distinguish in turn:

• Non-repayable grants: These are not to be returned, and already received
• Repayable grants: Those that could potentially be taken to be returned if not given 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 grant

Usually are not refundable, and to see its operation will imagine that today February 9 granted to E ª a government grant to exploitation for 1,000 € to receive the amount of it on February 12 in our bank.'s Operational is the following :

Note: If for example the grant is not carried out an official body, and out of a private company, rather than the mind (4708), we could use the account eg (440) Debtors.

This type of grant, gift or bequest, is not much mystery as you have seen, in the next post we will see capital subsidies are a bit special.

Be happy

The financial information in this entry refers to the Chart of Accounts for SMEs approved by Royal Decree 1.514/2007 of November 16, 2007 in Spain and applicable from January 1, 2008.

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

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