In our y/e accounts to 31 Mar 24 we received grant funding that wasn’t going to be fully spent until the following financial year. I recorded the transaction as follows:
Dr bank 10,000
Cr 4014 grant income £3,000 (the part we had spent in the year)
Cr 2103 deferred income £7,000 (to be treated as a liability in the balance sheet).
We have now spent the grant and I want to recognise the deferred income as revenue. I assumed the correct entries would be:
Dr 2103 deferred income £7,000
Cr 4014 grant income £7,000
However, when I try to create the journal entry it flags up as an error.
FYE 2023-24 has been closed off and the correct liability is showing in the balance sheet at y/e.
Can anyone suggest where I’m going wrong? Many thanks!
