Debit: profit distribution-withdraw any surplus reserve.
Loan: surplus reserve-statutory surplus reserve
Criteria for drawing statutory surplus reserve:
Article 166 of the Company Law stipulates that when distributing the after-tax profits of the current year, the company shall include 10% of the profits in the company's statutory reserve fund. The situation that the company needs to make up losses is not considered here. If the company continues to make profits without losing money, it can withdraw the statutory surplus reserve fund according to a certain proportion of the net profit after income tax.
Extended data
The difference between statutory surplus reserve and arbitrary surplus reserve;
The difference between statutory surplus reserve and arbitrary surplus reserve lies in the different basis of their respective extraction.
The extraction of statutory surplus reserves is based on national laws or administrative regulations.
The extraction of any surplus reserve shall be decided by the enterprise itself.
company law
Paragraph 3 of Article 167 of the Company Law stipulates: "After the company withdraws the statutory reserve fund from the after-tax profits, it may withdraw any reserve fund upon the resolution of the shareholders' meeting. "Whether to withdraw the provident fund and the proportion of withdrawal shall be decided by the shareholders' meeting according to the needs of the company's development and the surplus situation, and there is no mandatory law.
Baidu encyclopedia-statutory surplus reserve fund