The surplus achieved by the public institutions shall be distributed according to regulations.

The distribution of balances involves the interests of the country, units, individuals, etc., and must be handled in accordance with national laws and regulations.

The "Financial Rules for Public Institutions" stipulate that special balances of public institutions do not participate in balance distribution.

After deducting the special balance, the balance of a public institution must be distributed according to the following procedures: First, pay income tax in accordance with regulations.

The second is to turn over the money to the superior.

The third is to withdraw employee welfare funds according to the approved ratio.

The fourth is to convert it into a business fund.

The "Balance Distribution" account accounts for the current year's balance distribution status and results of public institutions.

The credit registration balance is transferred in, and the debit registration balance is distributed. The credit balance of this account is the unallocated balance, and the debit balance is the unmade balance.

After the year-end transfer, there is no balance in the "Balance Distribution" account.

The "Balance Distribution" account should generally set up the following detailed accounts: income tax payable, payable to superiors, withdrawal of employee welfare funds, withdrawal of enterprise funds, unallocated balance - enterprise balance, unallocated balance - operating balance.

When the balance is transferred in: Debit: Business balance Operating balance Credit: Balance allocation - Unallocated balance - Business balance When balance is allocated - Unallocated balance - Operating balance, the accounting entries are as follows: (1) Income tax paid: According to the tax law, it is

On taxable income, income tax payable shall be calculated and paid according to the prescribed tax rate.

When accruing, debit: balance distribution - income tax payable, credit: tax payable - income tax payable, when settling, debit: tax payable - income tax payable, loan: bank deposit (2) Payment to superiors: where the balance payment method is implemented

For units, the balance after income tax is calculated and paid to the superior based on the approved proportion or amount.

Debit: Balance distribution - payable to superiors Loan: Other payables - payable to superiors (3) Withdrawal of employee welfare funds: Withdrawal of employee welfare funds according to the proportion approved by the financial department.

Borrow: Distribution of balance - withdrawal of employee welfare fund Loan: Special fund - employee welfare fund (4) Transfer to public fund: In the process of capital movement of public institutions, public funds play the role of "reservoir" to adjust

The income and expenditure are balanced between years. Therefore, the balance after withdrawing the employee welfare fund is completely transferred to the enterprise fund.

If the income is greater than the expenditure, it will continue to be transferred to the enterprise fund. If the expenditure is greater than the income, the enterprise fund of the previous year will be used to make up the difference.

When determining the budget at the beginning of the year, if there is a gap in the expenditure arrangement, you can also directly arrange a part of the business fund to make up for the gap.

After the above three distributions, the balance will be transferred to the general fund of the enterprise fund in full.

Debit: Balance Allocation - Withdrawal of Undertaking Funds Credit: Undertaking Fund - General Fund If the unit's "undertaking balance" appears in red for the current year, that is, a negative balance, then there will be a debit balance in the "Balance Distribution" account, which can be made up with the underwriting fund after approval.