Accounting entries of investment funds deposited in banks.
Debit: bank deposit
Loan: paid-in capital
What is paid-in capital?
Paid-in capital refers to all kinds of property invested by investors as capital, which is the source of all legal capital registered by enterprises, and it embodies the basic property right relationship between owners and enterprises. The proportion of paid-in capital is the main basis for enterprises to distribute profits or dividends to investors.
China's "Regulations on the Administration of Enterprise Legal Person Registration" stipulates that unless otherwise stipulated by the state, the paid-in capital of an enterprise shall be consistent with the registered capital. When the paid-in capital of an enterprise increases or decreases by more than 20% compared with the original registered capital, it shall apply to the original registration authority for change registration with the certificate of capital use or capital verification.
What is a bank deposit?
Bank deposit is the currency deposited in the bank, and it is an integral part of monetary funds. According to the provisions of China's cash management system, every enterprise must open a deposit account with the People's Bank of China or a specialized bank for deposit, withdrawal and transfer settlement. Except for a small amount of cash within the prescribed limit, the monetary funds of the enterprise must be deposited in the bank. Bank deposits of enterprises mainly include: settlement account deposits, letter of credit deposits, foreign deposits, etc. The cashier is responsible for the receipt and payment of bank deposits. Every bank deposit income and expenditure business must prepare accounting vouchers according to the audited original vouchers.