Surat Ltd. has received a grant of 40 crore for purchase of a qualified machine costing 90 crores. The residual value is 2 crore and expected useful…
CA Intermediate · Advanced Accounting · RTP · September 2025
Surat Ltd. has received a grant of 40 crore for purchase of a qualified machine costing 90 crores. The residual value is 2 crore and expected useful life of the machine is 20 years. Answer the following question as per the requirements of AS 12, Government Grants assuming that the depreciation method is straight line:
Suggested Answer and Working Notes:
Correct Answer: Option (B)
Grant related to specific fixed assets
Topics: AS 10, AS 12, Applicability of AS
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