Handling of accounting entries of other monetary funds
When an enterprise transfers bank deposits into other monetary funds, the relevant accounting entries are as follows:
Debit: Other Monetary Funds-Detail Account
Loans: bank deposits
When an enterprise purchases trading financial assets, the relevant accounting treatment is as follows:
Borrow: transactional financial assets
Loan: other monetary funds-investment deposits.
Other monetary funds mainly refer to enterprises other than bank deposits. Monetary funds other than cash on hand mainly include foreign deposits (a series of funds remitted to local special buyers when enterprises conduct temporary business activities in other places), bank draft deposits, bank promissory notes deposits, investment deposits (funds deposited in third-party securities companies but not used for short-term investment), letter of credit deposits (deposits deposited in banks with bad letters of credit) and credit card deposits.
The difference between other monetary funds and transactional financial assets
Transactional financial assets are financial assets held by companies (such as stocks, bonds, funds and other financial instruments), which are held for the purpose of realizing short-term profits through sale. Usually the market determines the price, and the price fluctuates.
Other monetary funds are funds deposited in the accounts of securities companies and used to purchase financial assets such as stocks and bonds. Their form of expression is capital, and there is generally no problem of value change.
What kind of accounting subjects do other monetary funds belong to?
"Other monetary funds" belong to the asset category. Enterprises set up "other monetary funds" subjects, which are used to calculate the income and expenditure and balance of other monetary funds. The debit account registers the increase of other monetary funds, and the credit account registers the decrease of other monetary funds. The ending balance is in the debit account, which reflects the amount of other monetary funds actually held by the enterprise.