QUESTION 100 A specific government grant of Rs.15 lakhs was received by USB Ltd. for acquiring the Hi-Tech Diary plant of Rs.95 lakhs during the year 2014-15. Plant has useful life of 10 years. The grant received was credited to deferred income in the balance sheet. During 2017-18, due to non-compliance of conditions laid down for the grant, the company had to refund the whole grant to the Government. Balance in the deferred income on that date was Rs.10.50 lakhs and written down value of plant was Rs.66.50lakhs. (i) What should be the treatment of the refund of the grant and the effect on cost of plant and the amount of depreciation to be charged during the year 2017 - 18 in profit and loss account