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Government Grant for Equipment

Recording a cash grant received from the government to help buy a specific machine.

Account NameTypeDebit ($)Credit ($)
CashAsset (+)10,000.00-
Deferred Grant IncomeLiability (+)-10,000.00

💡 Accountant's Note

Grants are usually recorded as 'Deferred Income' (a liability) and recognized as revenue over the same period the machine is depreciated.

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