Job Recruitment Website - Property management - Who can explain the difference and relationship between paid-in capital, capital reserve, surplus reserve and undistributed profit? Better give a simple example.
Who can explain the difference and relationship between paid-in capital, capital reserve, surplus reserve and undistributed profit? Better give a simple example.
1. Paid-in capital (referred to as "share capital" by joint-stock companies) refers to the capital invested by investors according to the company's articles of association or contracts and agreements (including cash, physical assets and intangible assets). The proportion of paid-in capital or shareholders' shares is the basis for determining the owner's share in the owner's equity of the enterprise, and it is also the main basis for the enterprise to distribute profits or dividends.
2. Capital reserve. It is the part of the enterprise that the investment amount received by investors exceeds its share in registered capital (or share capital), and other capital reserves. Capital reserve includes capital premium (or equity premium) and other capital reserves.
(1) The reasons for the formation of capital premium (or equity premium) include issuing shares at a premium and investors paying more capital.
(2) Other capital reserves refer to other changes in owners' equity except net profit and loss, other comprehensive income and profit distribution. For example, when the long-term equity investment of an enterprise is accounted by the equity method, the capital reserve of the investing enterprise is increased or decreased according to the share due to changes in the owner's equity of the investee other than the net profit and loss, other comprehensive income and profit distribution.
(3) The purpose of capital reserve is mainly to increase capital (or share capital). Capital reserve does not reflect the proportion of owners, nor can it be used as the basis for owners to participate in enterprise financial management decisions or to distribute profits (or dividends).
3. Surplus reserves and undistributed profits are collectively referred to as "retained earnings". Refers to the internal accumulation of enterprises extracted or formed from the profits realized over the years.
4. Surplus reserve refers to the accumulated funds extracted from net profit by enterprises in accordance with relevant regulations. After approval, the surplus reserve drawn by an enterprise can be used to make up losses, increase capital or distribute cash dividends or profits.
5. Undistributed profit refers to the profit that the net profit realized by the enterprise stays in the enterprise after making up the losses, drawing surplus reserves and distributing profits to investors. Compared with other parts of owners' equity, enterprises have greater autonomy in the use of undistributed profits.
Extended data
Retained income refers to the internal accumulation retained by enterprises from the profits realized over the years, including surplus reserves and undistributed profits. Surplus reserve refers to the accumulated funds extracted from net profit by enterprises in accordance with relevant regulations. The surplus reserve of corporate enterprises includes statutory surplus reserve and arbitrary surplus reserve.
Statutory surplus reserve refers to the surplus reserve drawn by an enterprise from its net profit according to the prescribed proportion. Arbitrary surplus reserve refers to the surplus reserve drawn by an enterprise according to the resolution of the shareholders' meeting or the shareholders' meeting. After approval, the surplus reserve drawn by an enterprise can be used to make up losses, increase capital or distribute cash dividends or profits.
Undistributed profit refers to the realized net profit of an enterprise after making up losses, drawing surplus reserves and distributing profits to investors. Compared with other parts of owners' equity, enterprises have greater autonomy in the use of undistributed profits.
The statutory surplus reserve and the use of surplus reserve extracted by enterprises are mainly used in the following aspects.
(1) make up for the loss?
The annual losses incurred by the enterprise shall be made up by the enterprise itself. There are three compensation channels:?
(1) Pre-tax profit of last year. ?
(2) After-tax profits in the following years. ?
(3) surplus reserve fund.
(2) expanding the business scale of an enterprise or increasing its capital?
After capital increase, the remaining capital reserve fund shall not be less than 25% of the registered capital.
(3) Dividend distribution?
When an enterprise has no profit in that year, it shall not distribute dividends in principle. For example, in order to maintain the reputation of an enterprise, the following conditions must be met when distributing dividends with surplus reserves:
(1) After the surplus reserves cover the losses, there is still a balance in this common reserve fund. ?
(2) When distributing dividends with surplus reserves, the dividend yield should not be too high, and should not exceed 6% of the face value of the stock. ?
(3) After distributing dividends, the statutory surplus reserve fund shall not be less than 25% of the registered capital. ?
The public welfare fund extracted by property management enterprises is mainly used for the collective welfare of enterprise employees. Such as: building staff quarters, kindergartens, nurseries, etc.
General ledger finally extracts settlement entries:
At the end of the year, the enterprise will realize the total annual profit, which will be transferred from the subject of "profit of this year" to the subject of "profit distribution".
Debit: this year's profit
Credit: profit distribution (undistributed profit)
If it is a loss, make the opposite accounting entry.
According to the relevant provisions of the Accounting Standards for Business Enterprises (before 2005), enterprises should make the following accounting entries when making up the surplus reserve fund that has not been withdrawn in previous years.
Borrow: profit distribution-undistributed profit?
Loan: surplus reserve
At the same time, transfer the balance of other detailed accounts under the "Profit Distribution" account to the "Undistributed Profit" detailed account.
Debit: profit distribution (undistributed profit)
Loan: profit distribution (income tax payable)
Profit distribution (extraction of surplus reserve)
Profit distribution (profit payable)
Profit distribution (paid to special fund)
(1) Withdraw legal surplus reserve?
Borrow: profit distribution-withdrawal of statutory surplus reserve?
Loan: surplus reserve-statutory surplus reserve?
(2) Withdraw surplus reserve?
Borrow: profit distribution-withdraw any surplus reserve?
Loan: surplus reserve-is there a surplus reserve?
(3) Withdraw the public welfare fund?
Borrow: profit distribution-extraction of public welfare fund (extraction ratio is 5% to 10%)?
Loan: surplus reserve-public welfare fund?
(4) Use surplus to reserve losses?
Borrow: surplus reserve-make up for losses?
Loan: profit distribution-surplus reserves to make up for losses?
(5) Use surplus reserve to increase capital?
Borrow: surplus reserve-capitalization?
Loan: paid-in capital-surplus reserve transferred to increase.
References:
Baidu Encyclopedia/retained earnings
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