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Bank special fund cash
1. Should all special payables be transferred to capital reserve?

It depends on the requirements of special appropriation (there are relevant provisions in the general appropriation documents). If it is not used, it should be returned at the end of the project, so there is no problem of transfer.

2. What are the advantages of transferring capital reserve? If it can be transferred, the advantage is that it can immediately increase the owner's equity and improve the capital structure before the project is disposed of.

3. In terms of income tax, the expenses, assets, depreciation and amortization formed by special appropriation shall not be charged before income tax.

Now that the project is coming to an end, we need to prepare a detailed expenditure list. How can we show earmarking?

You can prepare a detailed list of funds and expenses, corresponding to the voucher number on the account.

If it is not transferred to the capital reserve, it can be carried forward.