Account 418 - Other fund under owner’s equity
1. Accounting principles
This accounts is used to record existing amount and the situation of increase decrease of other fund under owner‘s equity, such as reward fund for management boards of companies, etc. Other fund under owner‘s equity are formed from post-tax profits. Appropriation and use of other fund under owner‘s equity must comply with the current financial policy towards for every type of enterprise or decision of owners

2. Structure and content of account 418 - Other funds under owner’s equity
Debit side: The situation of expenditure and using other fund under owner‘s equity of enterprises.
Credit side: Other fund under owner‘s equity increased due to appropriation from post-tax profits.
Credit balance: Other fund under existing owner‘s equity.

3. Method of accounting for several major transactions
Appropriating other fund under owner’s equity from enterprise income tax, record:
Dr 421 - undistributed post-tax profits
Cr 418 - Other fund under existing owner’s equity.
b) When using the funds, record:
Dr 418 - Other fund under existing owner’s equity.
Cr 111, 112.
c) When enterprises supplement charter capital from Other funds under owner‘s equity, enterprises must transfer to owner‘s capital, record:
Dr 418 - Other fund under existing owner‘s equity.
Cr 411 - owner‘s capital (4111).

Source: Circular 200