1. Receive special funds for government projects:

Debit: bank deposits

Loan: special accounts payable

2. Purchase fixed Assets:

Debit: fixed assets

Credit: bank deposits

3. Special payables carried forward:

Debit: special payables Loan

Loan: Capital Reserve - Extension of Government Special Funds for the Purchase of Fixed Assets

Used for investment subsidies and incentive investment subsidies, it refers to government departments’ investment projects for qualified enterprises and investment fund subsidies provided by lower-level local governments for investment projects. Generally, the investment subsidies provided by the government shall not exceed 30% of the total investment amount.

Rewards are an incentive policy provided by government departments to companies with outstanding performance, outstanding performance, and major innovation contributions. The amount of rewards depends on the specific circumstances. Used for loan interest discounts and re-lending interest discounts, it refers to the loan interest discounts granted by government departments to investment projects that meet the conditions and use medium- and long-term bank loans.

Baidu Encyclopedia-Special Funds