source

1, the accumulated balance of income and expenditure in each year is the main source of public funds.

2, the balance of funds allocated to the completed project, in accordance with the provisions of the use of this unit, into the business fund.

3 units at the end of the year, such as adjusting or changing the previous year's accounting subjects, involving the balance of the previous year, generally should be directly transferred to or write down the business fund. But if the state has provisions, those provisions shall prevail.

4. When investing abroad, the difference between the appraised price or contract price of the invested assets, the value determined by the agreement and the book value shall be directly included in or offset from the business expenses.

Formation and properties

Understanding the formation and nature of public funds is the premise of correctly handling the business related to public funds. According to the specific business of institutions, the formation of public funds of institutions mainly has the following channels.

① Undistributed income of the unit. That is, the balance of business income and expenditure of public institutions and the balance of business income and expenditure are carried forward after the balance distribution, and its accounting entries are usually characterized by debiting the account of "balance distribution" and crediting the account of "business fund-general fund". It is the main source of public funds, and the amount of public funds directly depends on the quality of professional business and business related to public institutions.

Therefore, if an institution wants to obtain more business funds, it must strive to develop its business and reduce its business expenses.

(2) according to the provisions of the balance of special funds for the unit. That is, if there is a public institution that has allocated special funds, the net balance after the end of its special activities (or projects) will be returned to the unit after approval by the funding unit. Its accounting treatment is usually characterized by debiting the "appropriation" account and crediting the "public fund-general fund" account. The public funds formed by this source, for institutions, first depends on whether there are special funds allocated, secondly on the balance of special funds, and thirdly, it must be approved by higher-level funding units, so it is quite accidental for the formation of public funds for institutions.

3 institutions accept donated monetary funds, intangible assets and materials. Its accounting treatment is usually characterized by debiting "cash" or "materials" and crediting "public fund-general fund", which is also an irregular channel for the formation of public funds.

(4) the rights and interests formed by the foreign investment of public institutions. The new financial system of public institutions has made forward-looking considerations and institutional provisions for the business of public institutions, which is reflected in the addition of "foreign investment" and other subjects in accounting.

Another source of public funds is related to this. When public institutions invest in materials, fixed assets and intangible assets, etc. , the assessment price is higher or lower than the original book value, should be increased or decreased according to regulations. The operating fund (investment fund) formed in this part is a potential interest formed by investment, not real funds. In this regard, the unit should strengthen the management of equity projects different from the primary nature of business funds, so that it can bring more tangible benefits to the unit.

The business fund formed by the above 1-3 sources is the general fund in the business fund, and it is a fund with unlimited uses. The fourth source is the investment fund in the business fund, which is more manifested as the investment right.

Application and management

The funds of public institutions are valuable resources with unlimited uses in public institutions, and play the role of "reservoir" to adjust the annual balance of payments.

That is, if the annual income of the institution is greater than the expenditure in the future, the difference will continue to be transferred to the public welfare fund. If the expenditure is greater than the income, the difference will be made up by the public welfare fund in the previous year; When determining the unit budget at the beginning of the year, if there is a gap in the expenditure arrangement, part of the operating funds can also be used to make up for this gap. Specifically, the application direction of Public Offering of Fund mainly includes:

(1) The daily turnover use of institutions reflects the true nature of unrestricted use. It should be pointed out that public institutions are not allowed to write off public funds at will when using public funds. For example, when they use public funds to purchase materials, their accounting entries can only debit materials and credit bank deposits, but cannot be regarded as debiting public funds. In addition, we should actively do a good job in the annual budget, try our best to make ends meet, prevent public funds from being used at will, and encourage units to stand still and not make progress.

(2) make up for career overruns. Institutions in the annual operation, such as continuous cost overruns (losses), with the approval of the superior unit, can write off some public funds, and its accounting treatment is characterized by debiting "public funds-general funds" and crediting "balance distribution-making up for cost overruns (losses)". In this regard, first of all, we should summarize the reasons for the cost overrun and actively explore measures to solve the difficulties; Secondly, we must strictly abide by the write-off procedures, and we can't make claims and write off at will.

(3) The difference between the agreed appraisal price of the transferred fixed assets, intangible assets, materials and other assets being higher or lower than the original value or net value. With the increase or decrease of public funds, we should actively evaluate the agreement and strive to maintain and increase the value of unit assets. To prevent artificial manipulation of evaluation activities and damage public interests and personal interests. In addition, corresponding management measures and methods should be formulated according to the different nature and characteristics of general funds and investment funds in Public Offering of Fund. For general funds, it is necessary to formulate corresponding management measures to increase revenue and reduce expenditure and improve the efficiency of fund use; For equity investment funds, we should pay attention to investment analysis, be good at exercising rights and interests, and strive to turn potential rights and interests into real interests to realize the transformation of investment funds into general funds.

economic/business accounting

brief introduction

Institutions should set up the subject of "public funds", accounting for the source, use and balance of public funds, and there are two detailed subjects of "general funds" and "investment funds" under this subject.

for instance

1 At the end of the year, an institution transferred the undistributed balance of RMB 860,000 to Public Offering of Fund. The accounting entries are as follows:

Debit: the balance is allocated 860,000 yuan.

Loan: public fund-general fund 860000.

When a public institution completes a special task, according to the regulations, the special balance is 4,000 yuan, which is reserved for its use. The entries are as follows:

Borrow: Allocating Special Funds-Special Tasks 4000

Loan: Public Fund-General Fund 4000

Example 3 A public institution invests in foreign countries with fixed assets. The original book price of fixed assets is 350,000 yuan, and the appraisal price is 220,000 yuan. The accounting entries are as follows:

Borrow: foreign investment of 220,000 yuan.

Loan: operating fund-investment fund 220000.

At the same time, borrow: increase the fund by 350,000 yuan.

Loan: fixed assets 350,000 yuan.

Example 4 A public institution belongs to a general taxpayer and invested a batch of materials abroad one day. The original price of this batch of materials is 56,000 yuan, the selling price is 60,000 yuan, and the value-added tax is 10200 yuan. The accounting entries are as follows:

Borrow: foreign investment of 60,000 yuan.

Commercial Fund-Investment Fund 6200

Loan: Material 56000

Taxes payable-VAT payable (output tax) 10200

At the same time: Public Offering of Fund-General Fund 56000.

Loan: business fund-investment fund 56000.