Banking
Transfer to Statutory Loan Loss Reserve
Transferring a percentage of net profit to the statutory loan loss reserve as required by CBJ regulations.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Retained Earnings | Equity (-) | 2,000,000.00 | - |
| Statutory Loan Loss Reserve | Equity (+) | - | 2,000,000.00 |
💡 Accountant's Note
CBJ regulations require banks to maintain a minimum statutory loan loss reserve. This is an equity reserve (not an expense), appropriated from retained earnings after the annual IFRS 9 ECL charge.
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