Despite the fact that transactions accounting for authorized capital are rare, they are extremely important, as they reflect the relationship of the enterprise with its owners. Within the framework of this article, accounting entries associated with the initial formation of the authorized capital through contributions from its founders will be considered.
The property of an enterprise can be formed from its own and borrowed funds. Own funds (capital), in turn, consist of authorized capital, additional capital, reserve capital and retained earnings. The authorized capital occupies a central position among all the above reserves, since it is a fund formed when creating an enterprise. The first accounting entry at the enterprise is associated with the formation of the authorized capital - however, the authorized capital also applies to the last operations during the liquidation of the enterprise.
