The sinking fund is also called "debt reduction fund". A special fund set up by the state or the issuing company to repay outstanding public bonds or corporate bonds; Many developed countries have established sinking fund systems. Japan's sinking fund system was determined according to the special accounting law of the national debt consolidation fund in Meiji 39. Sinking fund: generally, it is only established when bonds are repaid in installments. Generally speaking, debt repayment funds are drawn from the surplus of the issuing company in a certain proportion every year, or from a fixed amount or the proportion of bonds issued every year.

An enterprise that establishes a sinking fund shall set up a subsidiary ledger of "foreign currency sinking fund" in the subject of "bank deposit" for separate accounting. This account is also a foreign currency account, and its balance needs to be adjusted according to the ending exchange rate. And their sources are processed separately:

1. For the foreign currency sinking fund established according to the first method, the account of "bank deposit-foreign currency sinking fund" shall be debited according to the amount of foreign currency actually purchased and the amount of RMB converted at the market exchange rate, and the account of "bank deposit-RMB" shall be credited according to the amount of RMB actually paid, and the difference shall be debited or credited.

2. When the foreign currency sinking fund established by the second method is withdrawn, the enterprise shall debit the account of "bank deposit-foreign currency sinking fund" and credit the account of "bank deposit-foreign currency" according to the amount of foreign currency withdrawn and the amount of RMB folded back at the book exchange rate.

3. The foreign currency sinking fund established in the third way can directly enter the sinking fund account stipulated in the Notice. Therefore, when receiving foreign exchange, you should debit the subjects of "bank deposit-foreign currency sinking fund", "accounts receivable" and "notes receivable" according to the actual amount received and the RMB amount converted at the market exchange rate.