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Accounting of the balance of public institutions
Accounting for the balance distribution of public institutions

After the balance of public institutions is transferred to the "balance distribution" subject, the balance distribution should be carried out. The balance of restricted use shall be transferred to the corresponding fund account according to the restricted use. The balance of unrestricted use is transferred to the operating fund.

The balance realized by public institutions shall be distributed in accordance with the provisions. The distribution of the balance involves the interests of the state, units and individuals and must be handled in accordance with the laws and regulations of the state.

The Financial Rules of Public Institutions stipulates that the special balance of public institutions does not participate in the balance distribution. After deducting the special balance from the balance of public institutions, it shall be allocated according to the following procedures:

First, pay income tax according to regulations.

The second is to turn over the superior funds.

The third is to withdraw the employee welfare fund according to the approved proportion.

The fourth is to turn it into a commercial fund.

The situation and results of the balance distribution of the accounting institution in the current year. Transfer-in number of credit registered balance, distribution number of debit registered balance, credit balance of this account is undistributed balance, and debit balance is uncompensated difference. After the year-end carry-over, the "Balance Distribution" account has no balance.

Generally, the following detailed accounts should be set up for the "balance distribution" account: income tax payable, payable to superior funds, employee welfare fund withdrawal, business fund withdrawal, undistributed balance-business balance and undistributed balance-business balance.

When the balance is transferred in:

Debit: business balance

Operating balance

Credit: Allocated Balance-Unallocated Balance-Business Balance

Balance Distribution-Unallocated Balance-Operating Balance

When allocating, the accounting entries are as follows:

(1) Payment of income tax: according to the provisions of the tax law, it belongs to taxable income, and the payable income tax is calculated and paid at the prescribed tax rate.

At the time of withdrawal,

Debit: Balance Distribution-Income Tax Payable

Loan: Taxes payable-Income tax payable

At the time of disconnection,

Borrow: taxes payable-income tax payable

Loans: bank deposits

(2) Payment to the superior: In the unit that implements the differential payment method, the balance after income tax is calculated according to the approved proportion or amount and paid to the superior.

Debit: Balance Distribution-Payable to superior.

Loan: other payables-superior payables.

(3) Withdraw employee welfare fund: Withdraw employee welfare fund according to the proportion approved by the financial department.

Debit: Balance Distribution-Withdraw Employee Welfare Fund

Loan: special fund-employee welfare fund

(4) Transfer to business fund:

In the process of fund movement in public institutions, public funds play the role of "reservoir" to adjust the annual balance of payments. Therefore, the balance after the employee welfare fund is withdrawn is all transferred to the public welfare fund. If the income exceeds the expenditure, it will continue to increase the operating fund. Expenditure is greater than income, with the previous year's business funds to make up the difference. When determining the budget at the beginning of the year, if there is a vacancy in the expenditure arrangement, a part of the operating funds can be directly arranged to make up the difference.

After the above three distributions, the balance will be fully transferred to the general fund of the business fund.

Debit: Balance Distribution-Withdrawal of Business Funds

Loans: public funds-general funds

If the unit's "business balance" appears in red, that is, negative balance, the "balance distribution" subject has a debit balance, which can be made up by the business fund after approval.

Borrow: public fund-general fund

Credit: Allocated Balance-Unallocated Balance-Business Balance