A Limited Company receives a grant from the local council for taking on an employee for 26 weeks @ 50% of the employees gross wages (subject to a limit). The grant is made in two payments. 1st payment has already been made the second payment will be made a few weeks after the end of the financial year for the company. 12 of the 13 weeks the employee worked (which make up the second payment) will be in Year 1 and the final week will be in Year 2.
Does this go in as accrued income or is left out completely? Not really to bothered about this one as the accountants will change it to the correct way if I get it wrong - just curious.
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Never buy black socks from a normal shop. They shaft you every time.
If the 2nd part of the grant is received after the year end and 12 of the 13 weeks is in the year then 12/13 of the 2nd part of the grant should be accrued under the matching concept.
eg if the grant was say for £2600 then £1300 has already been received and £1300 will be received after the year end. £1200 should be accrued in the year
Dr Accrued Income (BS) £1200
Cr Grant Income (P&L) £1200
After the year £1300 will be received and entered as income in the P&L the accrued income of £1200 will reverse against it leaving £100 income shown in the 2nd year.
Thanks - it's what I was thinking - just didn't know if being a limited company might change anything with some rule hidden away.
The Grant Income will likely end up in the strange position of "Overheads" in Sage - although the accountants will likely change it to a more sensible position in their accounts.
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Never buy black socks from a normal shop. They shaft you every time.
