Maintaining accounting records of the authorized capital (nuances)

Account 80 “Authorized capital”

Account 80 “Authorized capital” is intended to summarize information about the state and movement of the authorized capital (share capital, authorized capital) of the organization.

The balance in account 80 “Authorized capital” must correspond to the amount of the authorized capital recorded in the constituent documents of the organization. Entries in account 80 “Authorized capital” are made when forming the authorized capital, as well as in cases of increasing and decreasing capital, only after making appropriate changes to the constituent documents of the organization.

After the state registration of an organization, its authorized capital in the amount of contributions of the founders (participants) provided for by the constituent documents is reflected in the credit of account 80 “Authorized capital” in correspondence with account 75 “Settlements with founders”. The actual receipt of deposits of the founders is carried out on the credit of account 75 “Settlements with founders” in correspondence with the accounts for accounting for cash and other valuables.

Analytical accounting for account 80 “Authorized capital” is organized in such a way as to ensure the formation of information on the founders of the organization, stages of capital formation and types of shares.

Account 80 is also used to summarize information about the status and movement of contributions to common property under a simple partnership agreement. In this case, account 80 is called “Comrades’ Deposits”.

The property contributed by partners to a simple partnership on account of their contributions is accounted for in the debit of property accounting accounts (51 “Current accounts”, 01 “Fixed assets”, 41 “Goods”, etc.) and the credit of account 80 “Deposits of partners”. When property is returned to partners upon termination of a simple partnership agreement, reverse entries are made in accounting.

Analytical accounting for account 80 “Deposits of partners” is maintained for each simple partnership agreement and each participant in the agreement.

Account 80 “Authorized capital” corresponds with the accounts:

Example with transactions to increase the size of the authorized capital

The authorized capital of Vesna JSC is 200,000 rubles. and divided into 100 shares with a par value of 2,000 rubles. accordingly, in this case:

• At the end of the year, a revaluation of fixed assets was carried out and as a result, the initial cost of fixed assets increased by 40,000 rubles, and the amount of accumulated depreciation by 20,000 rubles. Accordingly, additional capital increased by 20,000 rubles.
• At the general meeting of shareholders, it was decided to increase the authorized capital by the specified amount by converting all shares of Vesna JSC into shares of a higher par value - 1,200 rubles. for a unit.

The accountant of Vesna JSC generated the following entries in account 80 when increasing the size of the authorized capital:

It is important to take into account that if a founder-legal entity makes a contribution to increase the authorized capital before the official registration of changes in the constituent documents, the Federal Tax Service may require it to be taken into account as gratuitously received funds.

Therefore, it should always be indicated in the “purpose” field as “contribution to the authorized capital” in the payment order or invoice, depending on the type of contribution.

HIGHLIGHTS OF THE WEEK

02/22/20211:36 Personnel

Deduction from wages under a writ of execution: changes from February 1, 2022

22.02.202214:21

Special modes

Simplified tax system: 5 important changes in 2022

22.02.202210:00

Taxes

New “penalty” and “subsidiary” BCC – from February 25

22.02.202213:05

Contributions

What will happen to insurance premiums after the merger of the Pension Fund and the Social Insurance Fund: draft amendments to the Tax Code of the Pension Fund

22.02.202213:32

Business organization

The Central Bank introduced support measures due to the market reaction to the recognition of the DPR and LPR

PODCAST

What legislative changes do accountants need to know and apply in their work from 2022

All episodes

Comments on documents for an accountant

About personal income tax on income received outside the Russian Federation

02/28/2022 Remuneration for the performance of labor or other duties, work performed, service provided, with...

Is it possible to apply tax deductions when paying personal income tax on interest on a deposit?

02/28/2022 Personal income tax is accrued on the total interest income on deposits (account balances) in...

Compensation for the use of personal transport for business purposes: what about personal income tax and contributions?

02/27/2022 When an employee uses personal property with the consent or knowledge of the employer and in his interests...
‹Previous›Next All comments

Specifics of using the account

Account 80 contains data relating to actions performed with the authorized capital of the enterprise. The size and form of capital are determined depending on the legal entity of the company. It is allowed to distribute the total amount into shares with the subsequent allocation of each.

Monetary and material contributions to the authorized capital are the company’s strategic reserve in the event of bankruptcy or other unfavorable factors.

Count 80 is passive. The size of the authorized capital, finally fixed in the statutory documents of the enterprise, must be reflected in the credit of this account.

Only the founders can make changes to the size of the authorized capital.

Authorized capital funds are used to organize the activities of the enterprise. They are indicated in the liability and transferred for subsequent use.

How to reflect a contribution to the authorized capital in the 1C 8.3 program

Let's look at the list of opportunities for capital formation, which can be seen by going from the "main menu" section to "Operations-Accounting".

Using the “Create” button, fill out the new opened document. It is necessary to enter the date when the capital was formed (usually it coincides with the date of registration of the company) and the name of the organization.

Next, we proceed to filling out the table. We click the “Add” button, the program in the drop-down list asks us to select a company, legal entity or individual as the founder.

Then a list appears with the names of persons, from which we select the one we need, and also enter the contribution amount of the specific founder.

Then click “Pass” and control the transactions using the DtKt button. The generated entry reflects the debt of the founder to the organization for the authorized capital.

It is worth noting that the above formation document makes it possible to print a list of founders, which will reflect the following data:

1. Full name of the founder;
2. Passport information;
3. Place of registration;
4. The size of the share in the authorized capital;
5. The amount of the contribution made;
6. Form of payment.

Various fixed assets can serve as a contribution to capital.
To determine their initial cost, you need to make a monetary valuation and agree on it with all the founding partners of the company. To formalize them as a contribution to the authorized capital, program 1C 8.3 suggests using the same formation document that was described earlier. If you are reflecting your authorized capital in 1C for the first time, we recommend leaving a free request for 1C support through the Bit.Personal Account service. A 1C consultant will call you back and help.

You can reflect the receipt and acceptance for accounting of the received fixed asset using the document “Acceptance for accounting of fixed assets”. This document is located in the “Purchases-Receipts (acts, invoices)” menu.

In the list that appears, using the “+ Receipt” button, we obtain a new document for the receipt of fixed assets.

Fill out the created document.

Click “Conduct” and then DtKt to control the postings.

The fixed asset that was received as a contribution must be taken into account, put into operation, and, in the future, depreciation must be calculated on it. This is reflected by the following entries:

• Dt 75 – Kt 80 the authorized capital was formed;
• Dt 08.04 – Kt 75.01 reflects the cost of the received asset, which the founder made as a contribution to capital;
• Dt 01 – Kt 08.04 The OS facility was put into operation.

The contribution of materials is reflected in the same way. First, we create and fill out the formation document. Then we prepare “Receipts (acts, invoices)”. To do this, go to “Purchases-Receipts (acts, invoices)”.

Using the “+ Receipt” button, we create a new document in which we select Goods (invoice).

We draw up a document, and as an accounting account, we indicate 75.01 calculations for contributions to the authorized capital.

Then click “Conduct” and check the wiring using the DtKt button.

Increase in capital

The Criminal Code can be increased in the following cases:

• changes in the organizational and legal form of a legal entity or type of activity to those requiring a larger capital amount;
• the owners make a decision about this.

An increase becomes possible only with full payment of the initially formed capital stock and registration of changes in the amount of the capital stock in the charter. PJSC and JSC that have already placed all the shares declared in the charter capital, after registering the changes made to the charter, will have to register an additional issue or conversion of shares with the Federal Financial Markets Service, and then with the Federal Tax Service, within 3 months from the date of the decision to increase the charter capital.

An increase is possible in the following ways (with appropriate accounting entries):

• Admission of a new participant and increase in the authorized capital for his share (in LLC and HT): Dt 75 Kt 80.
• Making additional contributions by previous participants (in LLC, SUE, MUP, HT): Dt 75 Kt 80.
• Increasing the share due to retained earnings or additional capital (in LLC, SUE, MUP, HT): Dt 83, 84 Kt 80.
• Additional issue of shares of the same par value at the expense of additional contributions from shareholders or other persons (in PJSC and JSC): Dt 50 (51, 52, 70, 75) Kt 80.
• Increasing the par value of shares due to retained earnings or additional capital (in PJSC and JSC): Dt 83 (84) Kt 80. In this case, shares of one par value are replaced with shares of a different par value.

Personal income tax must be withheld from the amount of increase in the individual’s share at the expense of profit (letter of the Ministry of Finance of Russia dated February 21, 2013 No. 03-04-05/4-117). If the capital increases due to the revaluation of the capital or as a result of the reorganization of a legal entity, then such income from individuals will not be taxed (clause 19 of article 217 of the Tax Code of the Russian Federation).

Participants (shareholders) - legal entities, when their contribution to the capital company increases, does not generate income subject to income tax (subclause 15, clause 1, article 251 of the Tax Code of the Russian Federation, resolution of the Federal Antimonopoly Service of the Volga District dated February 16, 2009 No. A65-11409/ 2006).

Characteristics - subaccounts, what is accounted for as debit and credit?

In accordance with the Accounting Plan, account 80 is intended to reflect information about the amount of the organization’s authorized capital (share capital), its changes in the course of the enterprise’s activities.
The balance of account 80 must always correspond to the amount of the capital reflected in the constituent documents of the company. If the amount of capital changes, then information about the new amount must be reflected both in the charter of the LLC and in accounting account 80.

That is, at any point in time, the amount indicated on account 80 must be equal to the Criminal Code from the charter.

For an LLC, the minimum authorized capital is 10,000 rubles; the enterprise can, at its own discretion, form a larger charter capital.

Account 80 is passive - intended for accounting for liabilities - authorized capital. Its amount is always reflected on the loan; the balance of account 80 is always in credit.

Limited liability companies do not open subaccounts on account 80. The exception is production cooperatives, which can open the following subaccounts:

• 80-1 – Mutual fund;
• 80-2 – Collective fund.

Sub-accounts can also be opened by joint-stock companies:

• 80-1 – Common shares;
• 80-1 – Preferred shares.

Analytics for the 80-account can be organized by founders.

How to deposit authorized capital into a current account

Nowadays, registering an LLC is possible without first opening a current account; however, we do not recommend that founders delay contacting the bank. The fact is that an organization can only pay taxes and other payments to the budget by non-cash means, so you will still have to open a bank account.

Before opening a current account at a bank, we recommend that our users get a free consultation with banking specialists, which will allow them to do this on the most favorable terms.

The organization can dispose of the funds contributed by the founders to the authorized capital (cash or non-cash) at its discretion: purchase goods or equipment, pay rent for an office or production premises, pay salaries, etc. In the course of the company’s activities, the authorized capital of the LLC can be increased or decreased, but it cannot become less than the minimum amount established by law, i.e. 10,000 rubles.

The deposit of funds into the company's current account as payment for the authorized capital is formalized for each founder separately, within the limits of his share in the LLC. If the founder does not pay his share on time or does not pay it in full, then it passes to the company and is distributed among other participants.

As for administrative fines against the LLC itself for violating the 4-month deadline for contributing the authorized capital, they are not provided for by law, however, in such cases the company can be forcibly liquidated.

Deadlines for contributing a share to the charter capital for an LLC

According to the current legislation (Federal Law No. 14-FZ dated 02/08/1998, as amended on 07/29/2017), all founders are required to contribute their shares to the authorized capital of the company during the period regulated by the agreement on the creation of the company. The time limit is four months from the date of registration of the enterprise with the Federal Tax Service of Russia.

An additional increase in the amount of authorized contributions is provided only after all founders have paid their shares in full. The increase can occur at the expense of the property of the enterprise itself, additional contributions from the founders or the contribution of third parties (if this does not contradict the Charter).

Making contributions when forming a management company

The authorized capital of an organization can be formed from monetary resources in cash and non-cash forms, as well as property or property rights. The simplest way for founders to contribute funds towards the formation of basic capital is a non-cash transfer of funds from the accounts of the owners to the account of the newly created company. It is also very easy to deposit cash funds through the cash desk towards the formation of the designated base capital.

It is much more difficult if the owners take part in the formation of these funds by contributing their property. In this case, it is necessary that the specified property be assessed by an independent organization, which will confirm that the value of the property corresponds to the declared share of participation.

More complex from a procedural point of view is the inclusion of property rights in the formation of a management company. Such a procedure requires not only an independent valuation, but also appropriate documentary support. In addition, such transactions have fiscal and legal risks. Both such rights and their assessment can, if there are compelling reasons, be challenged by both third parties and the federal tax service.

According to the requirements of the Civil Code, the minimum level of the authorized capital must be paid exclusively with monetary resources. And only that share that exceeds the minimum required level can be paid for with alternative assets.

What account is the LLC's management company reflected in?

The amount of the authorized capital reflected in the charter of a registered limited liability company must be taken into account in the accounting department of the enterprise.

In accordance with the Plan, account 80 is provided for accounting for the share capital of an LLC.

The posting for the formation of the management company is carried out once on the date of registration of the constituent documents by the tax authority.

Changes to Article 80 are made only in two cases:

1. Liquidation of an organization - accounting when closing an LLC.
2. Change in the size of the authorized capital (decrease or increase).