Using 81 accounts in accounting

What is 81 accounts for?

81 accounts are used to summarize information about the availability and movement of the company’s own shares. Shares are purchased from shareholders, after which further transactions are carried out with them. Actions with shares will depend primarily on the decision of the owner, that is, the buyer. When repurchasing shares, an entry is made in the accounting debit of account 81 for the amount of money actually spent. When canceling securities, correspondence is carried out with the authorized capital. The difference that appears from 81 accounts is allocated to 91 accounts

Important! In agricultural structures, repurchase can be carried out for the amount of actual costs, both on the debit and credit of the accounts used when accounting for money.

Active accounting accounts

All existing accounts are intended to generate reliable data on the movement of various company assets and the sources of their origin. Based on the information generated using standard entries in accounting accounts, the company’s mandatory registers are compiled - order journals, turnover sheets, account analyzes, the general ledger, and subsequently financial statements for the required time period. Transactions are recorded in accordance with supporting source documents.

The accepted grouping methodology is developed to combine synthetic accounts, primarily according to the balance sheet function, divided into active, passive and active-passive.

Active accounts are accounting accounts used to control the movement of assets: property and non-property assets of the organization. An increase in such accounts occurs on the left side - debit, a decrease - on the right side (credit). The incoming/outgoing balance is exclusively debit; the occurrence of credit values ​​means errors in accounting.

Active accounting accounts – list:

• – used to generate data on fixed assets (fixed assets).
• 20 – used to generate costs for the company’s main production.
• – characterizes the state of the company’s inventory.
• – shows the status of the account.
• 50 – used to reflect cash payments.
• – used to account for GP (finished products).
• – characterizes the state of intangible assets of a business.

Reflection of the sale of shares in accounting

Share repurchase activities take place at the request of shareholders. Shares subject to redemption become the property of the organization, after which they are resold, canceled or distributed among other shareholders. The features of using account 81 include the following:

1. In practice, the account can be used not only by joint-stock companies, but also by limited liability companies (when purchasing shares in the authorized capital).
2. Information on this account is reflected in the liability side of the balance sheet using parentheses (section 3, line 1320).

Important! The procedure for the repurchase and further sale of shares is established by the norms of the current legislation. It is common to all participants in this process and requires compliance with certain nuances.

Account 81 in accounting

The balance on 81 accounts is only debit or zero.

Organization of analytical accounting for account 81:

Features of using 81 accounts in accounting:

• Despite the fact that account 81 is called “Own shares purchased from shareholders,” this account is used not only by joint-stock companies, but also by LLCs when they buy out shares in the authorized capital from participants.
• It is also the only account in accounting, the debit balance of which is reflected in the liability side of the balance sheet in parentheses. Namely, in section 3 “Capital reserves” of the balance sheet on line 1320 “Own shares purchased from shareholders.”

Let's show this with an example. Let’s assume, according to the organization’s data as of December 31, 2016:

Then in section 3 of the balance sheet as of December 31, 2016. there will be the following entry (thousand rubles):

Since account 81 is active, and the account is reflected in the liability side of the balance sheet, therefore the amount is shown in brackets.

The question arises : why is active account 81 not reflected in the balance sheet asset?

Answer : the only line in the balance sheet asset where own shares purchased from shareholders can be included is financial investments. But, according to clause 3 of PBU 19/02, the above shares do not apply to financial investments. Account 81 is closely related, in particular, to the authorized capital, therefore it is reflected in the capital section of the balance sheet, but, of course, with a minus sign (in parentheses).

Which accounts does 81 accounts correspond to?

Important! When a company buys back shares owned by a shareholder from a shareholder, an entry is made in the debit of account 81 for the amount of expenses incurred. When canceling its own shares purchased by the company, accounting is carried out in the credit of account 81 and the debit of account 80 after the company has completed all the prescribed procedures. If there is a difference in 81 accounts between the costs incurred for the purchase of a share or share and their nominal value, it is allocated to 91 accounts.

81 accounts correspond with the following accounts:

Acceptance of shares for registration

Selena PJSC bought back 10 shares from shareholders at 950 rubles per share. The par value of the share is 1000 rubles.

If payment for shares occurs within a month or quarter after submitting the application, you can get by with one transaction:

If the participant is an individual, personal income tax must be calculated:

In this case, the transfer amount will look like this:

An organization may have several reasons for repurchasing its own shares:

• calculation to provide more favorable conditions on the market;
• desire to increase earnings per share;
• preventing a hostile takeover attempt;
• obtaining at your own disposal additional shares for your own activities, etc.

The purchase of own shares is not considered an acquisition of an asset. In effect, this transaction reduces assets.

Purchased shares are not included in the calculation of book value because they are not outstanding.

Sale of shares

After repurchasing the shares, the board of directors of Selena PJSC decided to sell 8 shares at 1,100 rubles per share.

In the case of the sale (transfer) of shares to another participant within the organization, these transactions will only affect the analytics of account 81, but not the overall result.

Postings to account 81: resale of shares

In the case of repurchase and resale of securities, the following entries are applied:

1. When repurchasing shares and accepting them for accounting, the same as in the previous scenario: Dt 81 Kt 51 (actual cost at the time of purchase).
2. Shares sold: Dt 51 Kt 91 (actual value at the time of the transaction).
3. When reflecting the financial result from the sale of shares, in the general case - profit: Dt 91 Kt 99.

In case of loss - Dt 99 Kt 91.

The wiring diagram we have considered is quite general. In practice, accounting for transactions on account 81 can have a huge number of nuances that require the inclusion of various additional entries in accounting.

For example, in the case when when repurchasing shares, not only their market and nominal prices are taken into account, but also the cost of the initial placement of securities on the stock exchange - IPO.

An initial public offering or IPO is the “first minute” of free circulation of securities issued by a business entity on the stock exchange. The price of shares at the IPO is close to the nominal value and, as a rule, slightly more than it (the difference is usually within 10%).

Reduction of the authorized capital due to repurchased shares

PJSC "Berezovaya Roshcha" bought back 500 shares at a price of 20 rubles per share, the cost of shares at par is 25 rubles.

Since the shares were sold to a third party, the board of founders decided to reduce the authorized capital by this amount.

The amount in excess of the nominal value over the purchase price (2,500 rubles) is reflected in the income account and is taken into account as part of non-operating income when calculating income tax.

Account balance 08 investments in non-current assets in the balance sheet

Subaccounts are second-order accounts subordinate to a specific synthetic account (first-order account), a method of consolidated grouping of analytical accounting data. They are used to detail synthetic account indicators for the purposes of analysis, control, and reporting.

The use of subaccounts by organizations is enshrined in the Chart of Accounts for accounting the financial and economic activities of organizations and the Instructions for its application, approved by Order of the Ministry of Finance of Russia dated October 31, 2000 No. 94n (hereinafter referred to as the Chart of Accounts, Instructions for the application of the Chart of Accounts, respectively), in separate PBUs, methodological instructions and recommendations in the field of accounting.

In correspondence with which accounts are debit 60 and credit 60 applicable?

In accordance with the chart of accounts. 60 is active-passive, so both its debits and its credits can be used for accounting entries.

The debit of this account is often used in correspondence with accounts: 50 “Cash”, 51 “Settlement accounts”, 52 “Currency accounts”, 55 “Special accounts in banks”, 62 “Settlements with buyers and customers”, 76 “Settlements with various debtors and creditors" and so on. (according to the instructions for the chart of accounts).

Credit account 60 is often paired with the following accounts: 08 “Investment in non-current assets”, 10 “Materials”, 15 “Procurement and acquisition of materials”, 20 “Main production”, 25 “General production expenses”, 26 “General expenses”, 41 “ Products" and so on.

In addition, for account 60 it is also possible to post Dt 60 Kt 60, the use of which is due to the reflection of transactions using different sub-accounts opened for account 60.

Balance sheet with accounts

This page shows the balance sheet with accounts. The accounts are shown according to the chart of accounts, which is also available on the website. This balance sheet has been prepared to facilitate understanding of the relationship between the accounting accounts and the balance sheet figures.

In contrast to the regulated form in which enterprises prepare reports, a column has been added to the balance sheet indicating the accounting accounts, the balances of which can be reflected in one or another line of the balance sheet. To make it easier to understand, the decoding “including” has been added to some balance lines.

So, for example, as can be seen below, the concept of “inventories” includes raw materials, work in progress, goods, etc. In the approved balance sheet form, this is one line and filling it out for beginners causes great difficulties.

If a task requires filling out a balance sheet according to an approved form, then the “including” decoding lines must be summed up and the result included in the final line.

Analysis of account 60: balance sheet, account card

The balance sheet for account 60 is a report in the form of a table, which presents the beginning and ending balances, turnover for the selected period by account or subaccounts, subaccounts, currency amounts, and expanded balance.

An account card is a report with details down to the posting (account).

You can analyze mutual settlements and the movement of documents for settlements with suppliers in the 1C Enterprise Accounting program using standard reports Account Card and Turnover Balance Sheet (hereinafter referred to as SALT) for account 60 “Settlements with suppliers and contractors” with a specific counterparty or in general for all.

It is correct to do this according to subaccounts:

• Subaccount 60.01 reflects the settlements with suppliers themselves;
• Subaccount 60.02 reflects advances issued.

In SALT, the balance on subaccount 60.01 is reflected as a credit, and the balance on subaccount 60.02 is reflected as a debit.

For example, when posting a bank, if it is paid to the counterparty on an invoice, then the goods are received and the payment should be reflected in the debit of subaccount 60.01. If there was an advance payment for goods or materials to the counterparty, then - by debit of subaccount 60.02.

If the posting is done incorrectly, then the balance with a minus will “hang” in the SALT for account 60. If there is a minus balance on the loan of the subaccount 60.01, this means that the prepayment was reflected incorrectly, not on the subaccount 60.02.

Accounting on account 60

Thus, the credit of account 60 reflects the organization’s accounts payable to the supplier or contractor.

The debit of account 60 shows a decrease in this debt, that is, payment according to the supplier’s documents, debit 60 corresponds with the credit of cash accounting accounts, the posting for payment of debt to the supplier has the form D60 K50 (51, 52, 55).

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/ Accounting statements / Line 1190 Attention!

How to fill out a balance sheet

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Line 1190 of financial statements

refers to the balance sheet of the enterprise

.

Line 1190

reflects information about other non-current assets whose circulation period exceeds 12 months and which are not reflected in other lines of Section I of the balance sheet

Line 1190

Other non-current assets of the organization include:

— equipment requiring installation and sets of spare parts for it. Installation is the putting into operation of equipment associated with the assembly of its parts and fastening to the base (i.e. to the supporting structures of buildings and structures);

— investments in non-current assets. These investments are accounted for in the corresponding subaccounts of account 08 “Investments in non-current assets”. For example, the organization’s costs for objects that will subsequently be taken into account as intangible assets or fixed assets, as well as costs for performing incomplete R&D;

— expenses related to future reporting periods. These expenses are taken into account in account 97 “Deferred expenses”. Examples include expenses for the development of natural resources, a one-time payment for the right to use the results of intellectual activity, etc.;

— the cost of perennial plantings, if they have not reached operational age;

- the amount of transferred advances and prepayments for work and services related to the construction of fixed assets.

useful links

►Economic literature◄ ►Methodology of financial analysis◄ ►Manual on financial statements◄ ►The largest joint stock companies in Russia◄

Key Accounting Features

In accordance with Order No. 94n, to form the initial cost of a non-current asset, it is necessary to use accounting account 08. This accounting account allows you to accumulate all the company’s costs that were associated with the creation, acquisition and development of new property of the institution.

The current accounting regulations provide for the opening of additional sub-accounts, which will allow for more detailed systematization and structuring of information on investments in non-current assets of the enterprise.

Source: https://cz-kch.ru/zakon/subscheta-k-schetu-01.html

Typical transactions for account 81

Example No. 1. Repurchase of shares and their further sale

Let’s say, at the request of a shareholder who is an employee of the organization, a PJSC buys back 1,500 shares with a par value of 1 ruble and a redemption price of 2,300 rubles. Next, the PJSC sells shares to individuals at a price of 2,400 rubles. The register of shareholders is maintained by the depository.

Postings to 81 accounts made in the organization:

Example 2. Redemption of a share using the organization’s property

Let’s say that an LLC participant, an individual, wrote a letter of resignation from the company in April 2021. The share was acquired in February 2011. By mutual agreement, the purchase of the share is carried out by transferring the office space of the administrative building with an area of ​​19 sq.m. Organization on the simplified tax system with taxation “income minus expenses”.

Table of indicators for reflecting business transactions on accounting accounts:

Postings made in an organization where account 01/в is disposal of fixed assets:

Accounting on account 81

As stated in the Instructions for using the Chart of Accounts, account 81 is used to account for the presence and movement of its own shares, which the JSC purchased from its shareholders for subsequent resale or cancellation. LLCs, for example, use this account to account for the share of a participant that was acquired by such LLC for transfer to other participants or third parties (Order of the Ministry of Finance dated October 31, 2000 No. 94n).

The repurchase of shares (shares) is reflected in the debit of account 81 and the credit of cash accounting accounts for the actual cost of acquisition as follows:

Debit account 81 – Credit accounts 50, 51, 52

If the JSC subsequently cancels the purchased own shares, and, accordingly, the authorized capital is re-registered in a new amount, the decrease in capital as a result of the cancellation of shares will be reflected in the accounting as follows:

Debit account 80 – Credit account 81

It must be taken into account that the specified entry is made for the nominal value of the shares. At the same time, it is quite possible that the cost of purchasing shares does not correspond to their nominal value. For example, the par value of a share is 1,000 rubles, and the redemption price is 1,500 rubles. The resulting difference between the nominal value and the acquisition cost in the amount of 500 rubles (1,500 - 1,000) is included in the financial results of the organization as other expenses. The above means that the entries for the redemption and cancellation of shares will be as follows (Order of the Ministry of Finance dated October 31, 2000 No. 94n):

Debit account 81 – Credit accounts 50, 51, 52 – 1,500

Debit account 80 – Credit account 81 – 1,000

Debit of account 91 “Other income and expenses” - Credit of account 81 - 500

If, instead of canceling shares (shares), the organization resells these shares or shares, the transactions will also be reflected through account 91:

Debit accounts 51, 52, etc. – Credit account 91

Debit account 91 – Credit account 81

Detailed correspondence with examples

Accounting for shares is quite complex and versatile.
Sometimes, in practice, circumstances arise in which a company buys out its own securities or a share in the authorized capital that belongs to another person. A logical question arises: how to take into account the acquired part of your own capital. In accordance with the chart of accounts and instructions for its use, active account 81 is often used for these purposes.

It is used to account for the presence and movement of the organization’s own securities (in particular, shares), which were purchased by the joint-stock company from the hands of shareholders. For example, LLCs use this balance to account for the participant’s share that they purchased for transfer to third parties. This norm is reflected in the order of the Ministry of Finance No. 94n.

It turns out that in practice you can make several business transactions by documenting them with the appropriate entries.

1. Dt 81Kt 50, and also other directions can be used for the loan (51, 52). The repurchase of shares is reflected according to Dt 81.
2. Dt 80 Kt 81. If in a further time interval the shares repurchased by the JSC are canceled and the authorized capital goes through the process of re-registration in a new amount, its decrease will be reflected in the accounting records as follows. It is worth taking into account the fact that this entry is made for the nominal value of the securities. There is a possibility that a situation may arise in which the purchase price has no correspondence to the nominal price. The resulting difference is attributed to financial results.
3. Dt 91 Kt 81. Income was received from the sale of shares previously purchased from shareholders. The operation also means that the amount of the difference found between the actual costs of repurchasing the securities and their nominal value has been allocated.