How to get the deferred income method for grants|:

New factory plant and machinery was purchased in October 2019 for €90,000 cash. This plant has a useful life of 5 years. On the same date a government grant of €30,000 was received towards the purchase of the grant. Neither the purchase of the machine or the receipt of the grant was recorded in the financial statements. Dallas Ltd accounts for capital-based grants by setting up a deferred grant income account. Depreciation is charged straight line over the life of this plant with a full year charged in the year of purchase and none in the year of sale. The original plant and equipment in the trial balance is depreciated at 20% on a reducing balance basis. 

Depreciation of all plant and equipment is charged to the cost of sales.