Because the dedicated fund decreases, on the debit side, the accumulated surplus increases, on the credit side. The special fund purchases fixed assets, and the accumulated surplus is borrowed from the special fund. It is not a special fund to purchase fixed assets, and the debit side is the accumulated surplus of the lender.
1. Why does the special fund need to be debited when buying fixed assets with a special fund and the credit is the accumulated surplus?
Because the debit side of the special fund should be an increase, while the purchase of fixed assets should be a special fund. reduce. First, the government allocates a special fund, and the entry is: Debit from bank deposits, Loan: Special fund; after the fixed assets are to be purchased, the entry is: Debit: Special fund, Loan: Accumulated surplus. "Accumulated surplus" can be understood as accounting for "changes in net assets." When special funds are used to purchase fixed assets, the special funds are reduced, but the net assets are not affected, because the special funds were withdrawn or set up before. At this time, the net assets have been affected. When purchasing fixed assets, spending money from a dedicated fund will no longer affect net assets. At this time, the increase in fixed assets will lead to an increase in net assets. Therefore, the "cumulative surplus" used to calculate changes in net assets will increase accordingly. What can be understood as accounting is the "change in net assets" "use of special funds to purchase fixed assets". The special funds are reduced. The special funds were previously withdrawn or set up and have affected the net assets. When fixed assets are purchased, they will no longer affect the net assets. , fixed assets have increased.
2. Are fixed assets accumulated surplus funds?
The net value of fixed assets is the process of adjustment of accumulated surplus and special fund equity. New public institution accounting system? The "Non-current Asset Fund" account has replaced the original "Fixed Fund" and "Industrial Fund-Investment Fund" accounts. Both Institutional Funds and Non-current Asset Funds belong to the owner's equity category. Credits indicate increases and debits indicate decreases. "Cumulative Surplus" It can be understood that what is calculated is the "change in net assets". If a special fund is used to purchase fixed assets, the special fund will be reduced, but it will not affect the net assets, because the special fund was withdrawn or set up before, and when it was withdrawn or set up, it has already affected When purchasing fixed assets, the money spent in the special fund will no longer affect the net assets. At this time, the increase in fixed assets will lead to an increase in net assets. Therefore, the "cumulative surplus" for calculating the change in net assets is It must be increased accordingly.
Special funds are only available to public institutions. They are special-purpose funds drawn after the allocation of non-financial appropriation balances, including employee welfare funds, scientific and technological achievements conversion funds, etc. .