The word surplus reserve appeared under the influence of the west, and it is actually a development fund extracted by enterprises in the past. Surplus reserves have a greater impact on enterprises.

First, the accrual method of surplus reserve

Surplus reserve refers to all kinds of accumulated funds extracted from net profit by enterprises in accordance with regulations. Surplus reserve is divided into public welfare fund and general surplus reserve according to different purposes. The public welfare fund is specially used for the expenditure of welfare facilities for employees of enterprises, such as the purchase and construction of dormitories, nurseries and barbershops. According to the current system, the company-owned enterprises draw the statutory public welfare fund at the ratio of 5% to 10% of after-tax profits. General surplus reserve is divided into two types: one is statutory surplus reserve. The legal surplus reserve shall be drawn by the company-based enterprise at 65,438+00% of the after-tax profit (the non-company-based enterprise may also draw more than 65,438+00%). When the statutory surplus reserve fund reaches 50% of the registered capital, it can no longer be withdrawn. The second is the discretionary surplus reserve fund. Arbitrary surplus reserves are mainly drawn by corporate enterprises according to the resolutions of the shareholders' meeting. The main difference between statutory surplus reserve and arbitrary surplus reserve lies in the different basis for their provision. The former is extracted according to national laws or administrative regulations; The latter is extracted by enterprises.

Second, how much surplus reserves exceed should be converted into capital.

The Company Law does not stipulate how much surplus reserve fund is converted into share capital. It only stipulates that when the statutory reserve fund is converted into share capital, the retained reserve fund shall not be less than 25% of the registered capital of the company before the conversion. However, the arbitrary provident fund is extracted by the enterprise independently rather than legally, so its transfer is completely decided by the enterprise itself, and there is no legal restriction.

Three. Surplus reserve accounting

When an enterprise withdraws surplus reserves according to regulations, it shall withdraw the amount of surplus reserves.

Debit: Profit Distribution-Withdrawal of Surplus Reserve

Loan: surplus reserve-general surplus reserve

Enterprises in accordance with the provisions of the public welfare fund, according to the amount of public welfare fund extraction.

Debit: Profit Distribution-Withdrawal of Surplus Reserve

Loan: surplus reserve-public welfare fund

When an enterprise withdraws the public welfare fund for the expenditure of collective welfare facilities,

Borrow: surplus reserve-public welfare fund

Loan: surplus reserve-general surplus reserve

When an enterprise uses surplus reserves to make up losses, it shall make up losses according to the current amount.

Borrow: surplus reserve-general surplus reserve

Loans: Profit Distribution-Transfer of Surplus Reserve to Increase

When an enterprise uses the extracted surplus reserve to increase capital, it shall increase capital according to the approved amount.

Borrow: surplus reserve-general surplus reserve

Loan: paid-in capital or equity.

When an enterprise converts surplus reserve into share capital, it shall, according to the proportion of paid-in capital structure before capital transfer, include the amount of surplus reserve into share capital in the investment ledger of each owner under the title of "paid-in capital", and increase the investment of each owner in the enterprise accordingly.

Reserve funds and enterprise development funds drawn by foreign-invested enterprises according to a certain proportion of their net profits, as well as the investment returned by Chinese-foreign cooperative enterprises to investors with profits according to regulations during the cooperation period, are also used as surplus reserves, and detailed subjects are set up under the subject of "surplus reserve". I hope the above contents are helpful.

Legal objectivity:

Capital reserve and surplus reserve: capital reserve is the part of capital invested by shareholders but cannot be included in paid-in capital (or share capital) for some reason. And the amount that should be included in the capital reserve in accordance with the provisions of the enterprise accounting system in the course of operation. Including: capital (or equity) premium, donation of non-cash assets, cash donation, equity investment preparation, capital transfer, foreign currency capital conversion difference, and other capital reserves. Here, the amount included in the capital reserve in business activities according to regulations is not brought by the profits created by the enterprise. Generally speaking, capital reserve belongs to invested capital and belongs to all shareholders according to the proportion of capital contribution. Except for some items, capital reserve can be converted into share capital. Surplus reserves refer to all kinds of surplus reserves extracted from the after-tax profits of enterprises according to the provisions of laws and regulations and the resolutions of the competent authorities of enterprises. Including: statutory surplus reserve fund, discretionary surplus reserve fund, statutory public welfare fund, reserve fund, enterprise development fund, profit return investment, etc. Surplus reserve is extracted from the profits created by enterprises and belongs to the category of retained earnings. On the premise of retaining the statutory balance, surplus reserve can be used for enterprises to increase capital, distribute dividends and make up for losses. There are three ways to increase registered capital: first, investors contribute (including original investors and new investors); Second, turn the capital reserve into paid-in capital; Third, turn the retained earnings into paid-in capital. The difference between capital reserve and surplus reserve: capital reserve refers to the capital owned by the owner and formed by non-income transformation. Capital reserve specifically includes capital premium (or equity premium), donated physical assets, asset appreciation, foreign currency capital conversion difference, etc. (1) Capital premium means that the amount of investment paid by investors to the enterprise is greater than the owner's share in the registered capital of the enterprise. Equity premium refers to the amount actually received by a joint stock limited company when it issues shares at a premium exceeding the total face value of the shares. (2) The donated physical assets refer to the physical assets donated by external units or individuals to enterprises. (3) Value-added in asset appraisal refers to the part where the value confirmed by the appraisal is higher than the original book value of the asset when the enterprise needs to appraise the asset due to foreign investment or according to the relevant provisions of the state. (4) The difference in foreign currency capital conversion refers to the difference between the value of assets converted according to the market exchange rate on the day of receiving foreign currency capital and the value converted into paid-in capital according to the agreed exchange rate when an enterprise accepts foreign currency capital investment. "Surplus reserve" is the retained profit with a specific purpose, that is, the retained profit used for production and operation and the collective welfare of employees. Surplus reserve includes three contents: (1) statutory reserve fund. The statutory reserve fund is a part of the profits extracted according to the Company Law or the financial system, with the ratio of 10%, and is used for making up losses, increasing capital and paying dividends in loss-making years. In the loss-making year, the enterprise shall pay dividends from the surplus reserve after making up the losses and obtain the approval of the board of directors. (2) Arbitrary provident fund. Arbitrary provident fund is a part of profits extracted according to the resolution of the board of directors, and the extraction ratio can be determined according to the needs of the future development of the enterprise. (3) Distribution of profits or dividends to investors. The above is the difference between capital reserve and surplus reserve. I hope it helps you.