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 NameTypeDebit ($)Credit ($)
Retained EarningsEquity (-)2,000,000.00-
Statutory Loan Loss ReserveEquity (+)-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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