How to account for the subscribed registered capital

Mondo Finance Updated on 2024-01-19

The subscribed registered capital refers to the registered capital that the shareholders promise to pay within a certain period of time in accordance with the law at the time of registration. Under the subscription system, the enterprise does not need to actually pay the registered capital, so it will not have an impact on the company's accounting.

However, under the subscription system, the enterprise needs to stipulate the term and method of capital contribution of shareholders in the articles of association, and record it when the company is established. When the shareholders actually pay the subscribed registered capital, the enterprise needs to carry out accounting treatment according to the actual situation.

Here's how it works:

1.When shareholders subscribe to the registered capital, the enterprise needs to stipulate the term and method of capital contribution in the articles of association, and record it when the company is established.

2.When the shareholders actually pay the subscribed registered capital, the enterprise needs to include the received money in the "paid-in capital" account, and record the corresponding shareholder information at the same time.

3.If the shareholders do not actually pay the subscribed registered capital within the time limit agreed in the articles of association, the enterprise needs to transfer the balance of the corresponding "paid-in capital" account to the "other receivables" account when the time limit agreed in the articles of association expires, and make provision for bad debts.

4.If the actual registered capital paid by the shareholders exceeds the subscription amount agreed in the articles of association, the enterprise needs to include the excess part in the "capital reserve" account.

5.When the enterprise distributes profits, the subscribed registered capital that has not been actually paid shall not participate in the distribution.

Here's a specific example:

A company was established in January 2020 with a registered capital of 1 million yuan, and two shareholders A and B subscribed 500,000 yuan and 300,000 yuan respectively. At the time of the establishment of the company, shareholders A and B did not actually pay the registered capital. According to the articles of association, shareholders A and B shall pay all the subscribed registered capital before December 31, 2020 and June 30, 2021 respectively.

On December 31, 2020, shareholder A actually paid the subscribed registered capital of 300,000 yuan, and shareholder B failed to pay the subscribed registered capital on time. At this time, the accounting treatment of the enterprise is as follows:

Borrow: Bank deposit 300000

Credit: Paid-in capital - 300,000 for shareholder A

At the same time, the information of shareholder A is recorded in the company's register of shareholders.

On June 30, 2021, shareholder B actually paid the subscribed registered capital of 200,000 yuan, but failed to pay all the subscribed registered capital in accordance with the articles of association. At this time, the accounting treatment of the enterprise is as follows:

Debit: Bank deposit 200000

Credit: Paid-in capital - 200,000 for shareholder B

Other receivables - 100,000 (unpaid subscribed registered capital) of shareholder B

At the same time, the information of shareholder B is recorded in the company's register of shareholders. If shareholder B fails to pay the remaining subscribed registered capital on time within the prescribed time limit, the enterprise needs to transfer the balance of the corresponding "other receivables" account to the "bad debt provision" account and make the corresponding bad debt provision. If the actual registered capital paid by shareholder B exceeds the subscription amount agreed in the articles of association, the enterprise needs to include the excess part in the "capital reserve" account.

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