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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3820
Experience:  FCCA FCMA CGMA ACIS
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I'm preparing accounts CIC (turnover variable as

Customer Question

I'm preparing accounts for small CIC (turnover variable as based on project funding but c. £15k) and not sure where to put unspent grant funds - it's cash in the bank but for specified purposes in the future so not profit - when I did accounts for a community group we called it "restricted funds".
And then next year if it is spent (but not income) will that look like a big loss on P&L account?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Kith, one of the experts on Just Answer, and pleased to be able to help you with your question. I would post the unused amount of the grant to Creditors. The logic behind this is that at this stage it may have to be refunded. In the next account period you remove it from Creditors and expend it as required within the limitations of the grant parameters. I do hope my reply has shown you a way forward in this matter.
Customer: replied 1 year ago.
That's helpful, and I understand that on the balance sheet I can put this in Creditors, but how do I show it on P&L? Is it not part of turnover?
Expert:  bigduckontax replied 1 year ago.
You only show in the P & L the used amount of the grant, the balance being placed it creditors thus accurately reflecting the actual proportion of grant utilised.

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