For accounting majors, what is the relationship between paid-in capital, capital reserve, surplus reserve and undistributed profit? What are their respective characteristics and how do they come about

the paid-in capital is the investment of the enterprise owner, and a joint stock limited company is called "share capital". As long as there is no increase in investment, this figure in the balance sheet is fixed. According to the legal requirements of our country, the paid-in capital is equal to the registered capital in amount. Registered capital is the limit for an enterprise to undertake limited liability. Capital accumulation fund

Capital accumulation fund is the shareholder's equity income formed by capital, assets and other reasons besides the company's production and operation. The capital accumulation fund of joint-stock companies mainly comes from the premium income from stock issuance, gifts received, asset appreciation, and net assets accepted by other companies due to merger. Among them, the stock issuance premium is the most common and main source of capital accumulation fund for listed companies.

surplus reserve fund

surplus reserve fund refers to the accumulated funds drawn from after-tax profits by enterprises according to regulations. Surplus reserves are divided into statutory surplus reserves and public welfare funds according to their purposes. When the cumulative withdrawal amount of statutory surplus reserve does not reach 5% of the registered capital, it will be withdrawn at 1% of the after-tax profit and 5%-1% of the public welfare fund.

The statutory surplus reserve and the use of surplus reserve extracted by enterprises are mainly used in the following aspects.

(1) make up for the losses

The annual losses incurred by an enterprise shall be made up by the enterprise itself. There are three ways to make up for it:

(1) Pre-tax profit of the previous year.

(2) After-tax profit for the following years.

(3) surplus reserve fund.

(II) After expanding the business scale of the enterprise or increasing the capital

After increasing the capital, the remaining capital reserve shall not be less than 25% of the registered capital.

(III) Distribution of dividends

In principle, an enterprise has no profit in the current year, and it is not allowed to distribute dividends. For example, in order to maintain the reputation of the enterprise, the following conditions must be met when distributing dividends with surplus reserve:

(1) After making up losses with surplus reserve, the reserve fund still has a balance.

(2) When distributing dividends with surplus reserves, the interest rate of shares should not be too high, and should not exceed 6% of the face value of shares.

(3) After distributing dividends, the statutory surplus reserve fund shall not be less than 25% of the registered capital.

The public welfare fund extracted by property management enterprises is mainly used for the collective welfare of enterprise employees. Such as: building staff quarters, kindergartens, nurseries, etc. Final extraction and settlement entry of general ledger: at the end of the year, the enterprise will transfer the total profit realized in the whole year from the "profit of the year" to the "profit distribution" account

debit: profit of the year

credit: profit distribution (undistributed profit)

If it is a loss, make the opposite accounting entry, and the enterprise will make up according to the relevant provisions of the Accounting Standards for Business Enterprises (System) (before 25). The following accounting entries should be made:

debit: profit distribution-undistributed profit

credit: surplus reserve at the same time, Transfer the balance of other detailed accounts under the "Profit Distribution" account to the "Undistributed Profit" account

Debit: Profit Distribution (Undistributed Profit)

Loan: Profit Distribution (Income Tax Payable)

Profit Distribution (Withdrawing Surplus Reserve)

Profit Distribution (Payable Profit)

Profit Distribution (Payable Special Fund) (1 Withdrawal of statutory surplus reserve

debit: profit distribution-withdrawal of statutory surplus reserve

credit: surplus reserve-statutory surplus reserve

(2) withdrawal of arbitrary surplus reserve

debit: profit distribution-withdrawal of arbitrary surplus reserve

credit: surplus reserve-arbitrary surplus reserve

(3) Withdraw public welfare fund

Borrow: profit distribution-withdraw public welfare fund (the withdrawal ratio is 5% to 1%)