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The main purpose of the public welfare fund
1, the enterprise accounting system stipulates that the statutory public welfare fund can only be used for the expenditure of employees' collective welfare facilities. 2. The following entries should be entered:

Borrow: fixed assets

Loans: bank deposits

Borrow: surplus reserve-statutory public welfare fund

Loan: surplus reserve-any surplus reserve

Debit: surplus reserve-any surplus reserve

Loan: surplus reserve-statutory public welfare fund

3. According to the laws of our country, the statutory public welfare fund is the source of funds that the enterprise extracts from the net profit realized in the current year according to a certain proportion, which is specially used for the collective welfare expenditure of enterprise employees and is an integral part of the owners' equity. When enterprises use the public welfare fund, the statutory public welfare fund that can be used in the future will be reduced. Therefore, in accounting treatment, this part of the statutory public welfare fund should be transferred from "surplus reserve-statutory public welfare fund" to "surplus reserve-general surplus reserve", and the assets purchased with the statutory public welfare fund need to be transferred back to the original public welfare fund.

The disposal of fixed assets purchased and built with the statutory public welfare fund is basically the same as the disposal of fixed assets used in other production and business activities of the enterprise. However, when it is transferred back to the statutory public welfare fund, it is only transferred back according to the amount originally used by the statutory public welfare fund, and the net profit and loss from the disposal of fixed assets is included in the current profit and loss. There is a difference between the book value and the original purchase and construction cost of the fixed assets purchased with the statutory public welfare fund at the time of disposal (assuming that all of them are purchased with the statutory public welfare fund). This difference is finally dealt with through the income statement in the form of depreciation and impairment, and is compensated from the realized income. Therefore, when dealing with the fixed assets purchased from the statutory public welfare fund, the difference between the book value of the fixed assets at the time of disposal and the original purchase and construction cost is no longer considered, and only the value of the fixed assets originally purchased from the statutory public welfare fund is transferred back to the statutory public welfare fund from the "general surplus reserve".