Provisions for problematic debt
Accounts receivable that are not paid within the stipulated time period and are not backed by certain guarantees are considered doubtful or problematic. They can be identified by the results of the annual inventory. The first step is to analyze whether the debtor can close the debt. This process can last a year. During this period, the amount of debt will be indicated as a reserve. After a year, the debt that was a reserve is transferred to debt (for a period of 5 years), and then written off as a loss.
Analytical accounting of reserve capital
Source: freepik.com
Registration of such reserves is singapore email list carried out on account 63 “Reserves for doubtful debts” (formation – by debit, write-off and addition of reserve balances – by credit).
Additional capital
Successful companies experience an increase in equity capital. In such a situation, it is possible to increase the volume of assets, including the Federal Reserve. The components of additional capital are:
revaluation of current and non-current assets;
the difference between the real and nominal value of securities included in the authorized capital;
exchange rate difference between the currencies in which the shares of the enterprise participants were contributed to the authorized capital.
To account for additional capital on credit, account 83 ("Additional capital") and special sub-accounts are used. Accounts 50, 51, and 52 ("Cash", "Settlement accounts", "Currency accounts"), etc. can act as debit.
Important! Funds included in the reserve capital are generally not subject to write-off, except for the posting of an increase in the authorized capital, revaluation of fixed assets, or negative exchange rate differences.
Example. In the OJSC "Potrebsoyuz" conditions were created for increasing the authorized capital by placing additional securities in it. Taking into account the par value of the shares, its size could have been increased by 300 thousand, but as a result of the sale by subscription of securities, 320 thousand rubles were received.