The minimum authorized capital is established by law, and its real amount is fixed and approved in the Charter of the enterprise. None of the founders will be able to change the type, value of the property, take their share without changing the relevant document. But they have the opportunity to make additional contributions to the development of the enterprise.
Accounting for the authorized capital confirms the guarantee of the actual existence of the enterprise. This is important for lenders making financial investments and partners engaged in joint activities.
All enterprises, starting their activities, keep records of the authorized capital and settlement with the founders.
The cost of production, profitability and profit of the enterprise, and most importantly, its financial stability, directly depend on its size and effective use.
The authorized capital can be contributed:
- cash;
- fixed assets;
- intangible assets (it can be patents, licenses);
- property rights valued in monetary terms (buildings, land);
- securities.
If the contribution of one founder is more than 200 minimum wages, then an independent examination of the transferred property is carried out. In all other cases, the assessment of the contribution is carried out by mutual financial agreement.
Accounting for the formation of authorized capital
Depending on the form of ownership of the enterprise, the authorized capital has the features of formation and is divided into:
- The authorized capital of municipal organizations that received fixed and current assets from the state.
- A mutual fund is formed from contributions of cooperative members who conduct joint activities.
- Share capital consists of the contributions of the partnership for business activities. In addition to them, there are also depositors who have obligations depending on their contributions.
When forming the authorized capital, several stages are distinguished:
- Announced, which is registered in the constituent documents.
- Subscription, which corresponds to the value of shares that can be guaranteed to be acquired by subscription.
- Paid, consisting of funds contributed and sold.
- seized. It is formed at the expense of the amount of repurchased shares from shareholders by the company itself.
To register an enterprise, it is necessary to deposit 1/2 of the authorized capital, which is declared in the current account and receive the relevant certificate. In accounting after the registration of the company, the accounting of the authorized capital is as follows:
D 75 K 80 - the authorized capital is formed.
D 50 To 75 - the money deposited in cash from the founder.
D 20 K 75 - contribution by services or work.
D 58 To 75 - contribution by securities.
D 51 To 75 - money has been deposited into the account.
D 10 K 75 - contribution materials.
D 41 K 75 - payment of goods.
D 08 To 75 - installment of fixed assets.
D 04 K 75 - contribution by intangible assets.
In case of a change in the constituent documents upward, the accounting of the authorized capital is kept on a loan of K 80, and for a debit of D 75.
Sources of increase can be:
- Reserve capital funds are required to cover losses D 82 Additional paid-in capital may be formed during revaluation or issue.
D 83
- Retained earnings for past years D 84.
- If the nominal value of shares increases (when issuing new ones).
D 50
· When the authorized capital is reduced, after the relevant changes in the statutory documents in the accounting department, a record is made for debit D 80, and for loan K 75 (81). This can happen when one of the founders leaves the organization. The accrued income D 84 K 75 is accrued to him and cash funds D 75 K 50 are issued (51).
· If the nominal value of shares of K 50 decreases or part of them was bought out by K 81, then the authorized capital will also be reduced and reflected in the debit.
Net assets at a cost at the end of the year may exceed the cost of the share capital, which also leads to its decrease (K 84).
The accountant must know how the formation and accounting of the authorized capital is carried out, its minimum amount, terms of introduction, regulation rules, conditions established by legislative acts under which it can be changed in the direction of increase or decrease.