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ACCOUNTS
II. Functioning of accounts
Class 1. Equity and liabilities

10. Capital and reserves

 

Depending on the entity's legal form, contributions and accumulated profits are recorded under the following conditions:

  1. ACCOUNTS FOR USE BY THE SOLE PROPRIETOR

    Account 101 " Sole proprietor's capital " is credited with:

    It is debited with:

    • deductions of all kinds;

    • the previous financial year's loss by crediting account 12.

    The personal contributions or withdrawals of the proprietor and, if applicable, his family are recorded during the financial year in an account 108 called " Proprietor's account " . At the end of the financial year, the balance of this account is transferred to account 101 " Sole proprietor's capital " .

  2. ACCOUNTS FOR USE BY COMPANIES

    Account 101 " Share capital " records to its credit the amount of capital stated in the company deed. It follows the evolution of this amount during the company's lifetime according to the decisions of the competent bodies.

    It is credited at the time of capital increases with:

    • the amount of the contributions in cash or in kind made by the partners, after deduction of the premiums linked to the share capital;

    • the amount of the capitalization of reserves.

    It is debited with the reductions of capital, whatever the cause, for example, absorption of losses or reimbursement to the partners.

    Account 1018 " Subscribed capital subject to special regulations " records to its credit the amount of capital arising from specific transactions, such as the capitalization of net long-term capital gains, which are segregated according to legal and regulatory requirements. This account is subdivided as necessary.

    Account 104 " Premiums related to share capital " records share premiums, merger premiums, contribution premiums, premiums on conversion of bonds into shares.

    At the time of subscription, the company issuing the share warrants records the counterpart of the value of the warrants in account 104. This allocation is maintained if the warrants expire.

    Account 104 also records the amount of the entrance fee to cooperatives.

    Reserves to be recorded in account 106 " Reserves " are profits permanently allocated to the company until otherwise decided by the competent bodies. This account is credited, at the time of the appropriation of profits, with the amounts intended for:

    • the legal reserve;

    • reserves not available for distribution, e.g.: reserves for own shares;

    • statutory or contractual reserves;

    • regulated reserves, such as net long-term capital gains and reserves resulting from the granting of investment grants;

    • other reserves, which include in particular the self insurance reserve.

    Account 106 is debited with the amounts withdrawn from the relevant reserves for incorporation into capital, distribution to partners and write-off of losses.

    Account 107 " Difference in equity method " records the excess of the total value of equity-valued securities over their purchase price.

    Account 109 " Shareholders: subscribed uncalled capital " is debited against the subdivision of Account 101 entitled " Subscribed capital - uncalled " .

  3. ACCOUNTS FOR USE BY ALL ENTITIES

    Account 105 " Revaluation differences " records differences arising from revaluation transactions which may be incorporated in whole or in part into capital. It is subdivided as necessary.

 

 
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