i would like to know the accounting entries for the government grant and where they appear in balance sheet?

Answer 1

This is covered by IAS 20 "ACCOUNTING FOR GOVERNMENT GRANTS AND DISCLOSURE OF GOVERNMENT ASSISTANCE"

The accounting entries depend on what form the grant takes. Perhaps this summary would help:

Accounting for Grants

A government grant is recognised only when there is reasonable assurance that
(a) the enterprise will comply with any conditions attached to the grant and
(b) the grant will be received. [IAS 20.7]

The grant is recognised as income over the period necessary to match them with the related costs, for which they are intended to compensate, on a systematic basis, and should not to be credited directly to equity. [IAS 20.12]

Non-monetary grants, such as land or other resources, are usually accounted for at fair value, although recording both the asset and the grant at a nominal amount is also permitted. [IAS 20.23]

Even if there are no conditions attached to the assistance specifically relating to the operating activities of the enterprise (other than the requirement to operate in certain regions or industry sectors), such grants should not be credited to equity. [SIC 10]

A grant receivable as compensation for costs already incurred or for immediate financial support, with no future related costs, should be recognised as income in the period in which it is receivable. [IAS 20.20]

A grant relating to assets may be presented in one of two ways: [IAS 20.24]

1. as deferred income, or
2. by deducting the grant from the asset's carrying amount.

A grant relating to income may be reported separately as 'other income' or deducted from the related expense. [IAS 20.29]

Disclosure of Government Grants

The following must be disclosed: [IAS 20.39]
Accounting policy adopted for grants, including method of balance sheet presentation
Nature and extent of grants recognised in the financial statements
Unfulfilled conditions and contingencies attaching to recognised grants

Government Assistance -
Government grants do not include government assistance whose value cannot be reasonably measured, such as technical or marketing advice. [IAS 20.34] Disclosure of the benefits is required. [IAS 20.39(b)]

Answer 2

Your question is incomplete. Is the government or the recipient accounting for the grant? I'll assume that you are getting the grant. What you debit and credit depends on the conditions of the grant.

If you are required to use the money for certain purposes, such as providing food to the needy or scholarships to students, you could debit a cash fund designated as grant funds and credit a liability account which would be reduced each time you spent grant money on the food or paid the scholarship.

If the grant is given to you without obligations to spend it on someone else, you can debit cash and credit Donated Capital