Possible accounting entries for authorized capital
Creation of any commercial enterpriseimplies the availability of seed capital for its further functioning. In today's economic space, a prerequisite for financial independence is a clear control over cash flows regardless of the speed of their movement. The charter capital is characterized by reduced mobility and rare movements, but the correctness of its accounting and use depends on the profitability of each company.
From a legal and economic position, the charter capital provides three important functions:
- Warranty. The aggregate amount of the charter capital serves as a security for part of the liabilities to creditors.
- Structural. The amount and amount of participation of each owner (founder) in the statutory fund determines the amount of his income and the degree of participation in decision-making of management nature.
- Starting. Asset provision at the initial stage of the company formation.
By definition, the share capital is the amountassets, which the owner (founders) invests in the future company. Depending on the registered legal form, the capabilities of the owners and the scope of the organization's activities, the way to create a warehouse is chosen. As a contribution, the founder can contribute:
- Monetary (cash, non-cash, foreign exchange) funds.
- Non-current (production, non-productive) assets.
- Intangible assets (having an estimated value).
- Current assets.
In any case of creating a posting on the authorized capital should reflect the amount of each contribution and the order of its use for the needs of the enterprise.
Account 80 "Share capital" was created to reflectall operations of movement and formation of means of the warehouse fund of the enterprise. The account is passive, balance, its equivalent equivalent means the actual amount of capital, it is regulated by the legislation of the Russian Federation and the organization's statutory documents. Postings on the authorized capital are formed at its creation and at the moment of its size change in the direction of increase or decrease. Any adjustment of the amount specified in the balance sheet of the enterprise must be agreed with all owners and included in the constituent documents. The analysis is conducted for each owner separately. As the first posting on the charter capital, an accounting transaction is recorded: Debit 75; Credit 80.
Opportunities to increase the size
With an increase in the stock (statutory) fundcompany owners can use various assets. Depending on the funds used, a contribution is made to the authorized capital. Postings are made as follows:
1. Debit 52, 51, 50, 55; Credit 80. Increase in the authorized fund funds in cash, credited to the settlement, special, currency account of the enterprise.
2. Debit 41, 10, 11; Credit 80. Current assets (materials, goods, raw materials) are contributed by owners to the warehouse fund.
It is also possible to replenish the authorized capital with property, the following are compiled:
1. Debit 01; Loan 80. Fixed assets are contributed to the statutory fund.
2. Debit 04; Credit 80. NMAs are accepted as a contribution to the authorized capital.
Change in the direction of increasing the amount of capitalenterprises can be produced with the consent of all owners at the expense of funds from the profits received, which are not distributed among the founders, but are sent to the company's authorized (reserve) fund: Дт 84; Кт 80. In the same way, the increase can occur from the assets of additional capital or the reserve fund, which is reflected by the relevant postings and changes in the constituent (statutory) documents of the enterprise.
Reducing the Fund
Reduce the size of the stockcapital is possible only with the participation of all owners. The motivation for this step is the company's financial and economic position. But most often the reduction occurs as a result of voluntary withdrawal from the approved composition of the founders of several or one owner. At the same time, the sum expression of the authorized capital is not always reduced, the share of funds contributed by the former owners can be redeemed by the operating ones. Postings on the charter capital, in case of its reduction, include the following:
- Дт 80; Ct 01, 04. Return of fixed assets, NMA accepted as a contribution to the statutory fund.
- Дт 80; Кт 10, 41, 11. Return of materials, goods to the owner, who left the structure of the founders of the enterprise.
With a contribution of cash or non-cash fundsrefund can occur from the cash register of the enterprise or settlement, foreign currency accounts: Дт 80; Кт 50, 55, 51, 52. To avoid negative consequences of the withdrawal of working assets of the enterprise (negotiable, non-current, material), the owners can agree on the return of the introduced part of the statutory fund in cash (cash, non-cash). To do this, the assets received are evaluated, the residual value is calculated.