Account 94 in accounting: postings, account correspondence

Account 70: active or passive (and what is it used for in accounting)?

Account 70 is used to account for payroll settlements with personnel.
But first of all, let’s answer the question: is account 70 active or passive, so that we know what types of objects are accounted for on it and how they are related to the corresponding accounts.

The account in question is a passive account, since it reflects the company's obligations to pay salaries as a liability. Account credit 70 shows salary accruals. That is, the loan reflects the amount of liabilities. As liabilities increase, credit increases (this is one of the characteristics of a passive account).

The debit of account 70 shows:

• repayment of obligations reflected on the credit side of accruals (that is, reflects salary payment transactions);
• repayment of obligations related to salary deductions (tax, alimony, compensation for damage) - the employer fulfills these obligations as the final “collector” of the debt.

You can learn more about the essence of debit and credit and the criteria for classifying an account as passive or active in the article “Rules for making entries in accounting.”

Let's take a closer look at exactly which entries are recorded in the debit and credit of account 70 in practice.

Let's start with the credit side of account 70 of accounting.

Settlements on account 73 for other transactions

In addition to common payments for compensation of material damage and repayment of a loan, account 73 “Settlements with personnel for other operations” is used for the purpose of:

• deduction of accountable amounts if they cannot be written off from the employee’s salary;
• payment of monetary compensation to an employee for the use of personal property for work purposes;
• write-off of costs or losses from defects;
• reflection of the debt amount from the sale of uniforms to an employee;
• accounting for the amount required to be returned for real estate sold by the organization to an employee or services provided.

If necessary, appropriate sub-accounts are opened for each of the listed operations.

What does account credit 70 show: salary postings

Payroll in an organization includes, in fact, the only group of operations that are shown in account 70 - those related to the payroll itself on the basis of employment or civil contracts (vacation pay, sick pay at the expense of the employer).

Salary accrual is shown by posting Dt 20 (23, 25, 26, 44...) Kt 70. On account 70, the liability increases - by the amount of the obligation to pay wages. An asset increases in the expense account—in the form of payroll expenses.

The posting amount corresponds to the total amount of wages including personal income tax. This is due to the fact that de jure tax is paid on the income of the employee himself. Personal income tax may not be charged if the employee receives a tax deduction during the billing period.

The following accounts can be used to account for labor costs:

• 08 (if wages are accrued to employees involved in the construction (creation) of an OS facility);
• 23 (if calculations are carried out at auxiliary production);
• 25 (if salaries are paid to employees of service departments);
• 26 (if salaries are paid to management and managers);
• 44 (if the salary is paid to the sales department or in a trading company);
• 96 (if vacation pay is paid from the reserve).

Note that transactions related to the calculation of insurance premiums are not shown in account 70, despite the fact that the very fact of calculating these contributions is associated with the payment of wages. The fact is that the employer pays the contributions de jure at his own expense, without deducting them from the employee’s salary itself.

Basic entries for contributions:

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• Dt 20 (23.25...) Kt 69 (contributions accrued);
• Dt 69 Kt 51 (contributions transferred to the budget).

In this case, correspondence between accounts 70 and 69 is possible. For example, if there is a payment of sick leave on account of subsequent compensation from the Social Insurance Fund, then this is shown by posting Dt 69 Kt 70.

Now let's look at the postings to account 70 by debit.

How to close 94 account

When registering the write-off of identified losses from account 94, as the period of control and audit activities is closed, the corresponding accounting records should be compiled. However, the postings where account 94 is closed will depend on the type and causes of losses, as well as on the methods of covering them.

Typical write-off transactions:

Note that if the company decided to recover from the culprit the market value of the lost object, then on the account. 94, still take into account the actual cost of the property, and reflect the difference with additional posting: Dt 73 Kt 98 “Deferred income”.

Account 94 in the balance sheet, where is it reflected? There are no separate lines provided for the inclusion of damage amounts in the financial statements. In the balance sheet, reflect the amount of losses and shortages in line 1260 “Other current assets.”

What does the debit of account 70 show: postings

On the debit side of account 70 the following are recorded:

1. Withholding personal income tax from wages.

The posting used here is: Dt 70 Kt 68 (13% (or 30% if the physicist is a non-resident) of the amount reflected in the accrued wages). The amount of salary payable on account 70 decreases, because the employer, being a tax agent, withholds the calculated personal income tax, increasing the credit balance on the account. 68 (personal income tax subaccount).

The subsequent transfer of personal income tax to the budget is reflected by posting Dt 68 Kt 51. Other deductions from wages are also possible. For example, alimony under a writ of execution:

• Dt 70 Kt 76 - alimony withheld;
• Dt 76 Kt 51 - alimony is transferred to the recipient.

1. Payment of wages.

Posting Dt 70 Kt 51 (if the salary is issued to the current account) or Dt 70 Kt 50 (if the salary is issued in cash from the cash register). The amount to be issued is the one that remains on the credit of account 70 (credit balance), i.e. minus personal income tax (and other deductions, if any).

In practice, debit and credit entries can be visualized using the account balance sheet. Let's consider its specifics.

How is the balance sheet for account 70 (and the account card) used?

One of the main tasks of using turnover is to summarize information about payroll settlements with employees (according to the debit and credit of account 70 of accounting) during the billing period (for example, a month). To consider the “analytics” of the account both for the organization as a whole and for settlements with each employee, you should use the account card.

A typical balance sheet for account 70 reflects:

1. The balance (debit or credit) of the account at the beginning of the billing period.
2. Debit and credit turnover during the billing period.
3. Balance at the end of the billing period.

To calculate the balance at the end of the period, you need to add the credit turnover for the period to the opening balance and subtract the debit turnover for the period under consideration.

Example of a balance sheet for account 70:

Many accounting programs, for example 1C, implement the function of generating an account card 70. It shows all correspondence on account 70 during the month (with analytics for each corresponding account - for example 20, 51).

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Account 70 in the accounting department reflects transactions on accruals and payments of wages. For credit - accruals, for debit - payments and deductions.

Postings to account 70 for payroll

There are basic and additional wages. Depending on the type of remuneration, accounting entries are generated.

1. Calculation of wages to employees and attribution to production costs: time-based and piece-rate wages, etc.

Dt 20;25;26;44 Kt 70

Let’s say wages have been accrued to employees of the main production of a bakery in the amount of 800,000 rubles, to storekeepers in the amount of 30,000 rubles, to salespeople in a production store in the amount of 40,000 rubles, and to administrative and management personnel in the amount of 200,000 rubles.

The bakery accountant will make the following entries in account 70:

1. Accrual of vacation pay at the expense of the previously created reserve: Dt 96 Kt 70 – amount of vacation pay.

1. Calculation of temporary disability benefits from the social insurance fund: Dt 69.1 Kt 70.

1. Financial assistance was accrued from net (retained) profit: Dt 84 Kt 70.

1. Accrued to the salaries of employees for the construction of an OS facility and attributed to the costs of capital implementation. investments: Dt 08 Kt 70.

1. Accrued to wages of employees for dismantling fixed assets and charged to other expenses: Dt 91 Kt 70.

Account 94 in accounting

Account 94 of accounting is an active account “Shortages and losses from damage to valuables”, designed to reflect information on the amounts of shortages and losses from damage to material or other valuables, including funds identified during production, storage or sale. But not all shortages are attributed to 94:

Important! Account 94 “Shortages and losses from damage to property” includes all shortfalls, except losses from emergency events.

A shortage is a discrepancy between actual availability and accounting data. Let's look at the reasons for the shortages:

Shortages and losses are identified during:

• Inventory;
• Acceptance of goods from the supplier;
• Checking documents.

The debit of account 94 takes into account the cost of shortages and losses from the credit accounts, depending on the type of property.

1. Inventory assets:

• Completely damaged or missing - their actual cost is given;
• Partially damaged – actual losses.

2. Fixed assets:

• Completely damaged or missing - their residual value is given, that is, the original cost taking into account the amount of accrued depreciation;
• Partially damaged – actual damages

3. Other - according to actual losses, that is, the amount of determined losses is given.

Types of shortages and losses:

• Normalized, that is, within the limits of natural decline;
• Unstandardized, that is, in excess of the norms of natural loss.

Standardized losses and shortages

Normalized losses and shortages include natural loss during storage or transportation (shrinkage, spillage, shaking, etc.) and caused by physical and chemical properties.

The loss limit (E) is determined by the formula:

• Where T is the cost (weight) of the goods sold (dispensed);
• Where N is the rate of natural loss, %.

Postings to account 70 for salary deductions

The accounting department of an enterprise not only carries out salary calculations, but also deductions and deductions from it. Let's look at the main types of deductions.

Personal income tax – personal income tax

The object of taxation is the income received by the taxpayer. When determining the tax base, all taxpayer income received both in cash and in kind, as well as income in the form of mat. benefits. Posting Dt 70 Kt 68 - withheld from salary personal income tax for payment to the budget.

Let's say a salary is accrued in the amount of 30,000 rubles. The employee has two minor children.

This means that, according to current legislation, an employee has the right to standard tax deductions in the amount of 1,400 rubles. for 1 child. Let's do the calculation: (30,000 – (1400 *2))* 13% = 3,536 rubles.

The posting will take the following form: Dt 70 Kt 68 amount 3,536 rubles.

Withholding of alimony under writs of execution

The basis for withholding alimony is writs of execution, as well as a written statement from the employee about the voluntary payment of alimony. The amount of alimony depends on the number of minor children: for one child – 25%, for two children – 33%, for three or more – 50%

Collection of alimony is made from all types of income and remuneration, both from the main and part-time work, as well as from dividends.

A posting is generated: Dt 70 Kt 76 – withheld from salary according to writs of execution in favor of the claimant.

Compensation for material damage

The basis is acts and decisions of judicial authorities. For example, if an employee is found guilty of committing an accident and, by a court decision, is obliged to pay the victim a certain amount of damage, then the following entry is generated: Dt 70 Kt 73.2 - withheld from salary to compensate for mat. damage.

Repayment of debt on accountable amounts

The basis is advance reports and data from railway station No. 7. If an employee has not reported for the amount previously given to him on account, then the accountant has the right to deduct it from the salary by posting Dt 70 Kt 71 - the balance of the accountable amount is withheld from the salary.

Prepaid expense

Some enterprises issue advance payments to employees in the middle of the current month. The advance amount should not exceed 50% of the salary minus personal income tax. The advance is issued from the cash register according to the payroll, on the basis of which a cash receipt order is drawn up. Reflected by posting Dt 70 Kt 50 - salary issued from the cash register to employees. When paying wages for the month, the accounting entries are repeated, only the amount changes.

Payment of wages in kind

In this case, the following transactions are generated:

• Dt 70 Kt 90 (91) – PO was paid for the amount of products, goods, materials issued in kind at sales prices, including VAT;
• Dt 90 (91) Kt 43 (41, 40) – reflects the sale of goods, products, etc. employees towards their salaries.

If it is impossible to pay wages on time

If it is impossible to pay wages on time, they must be deposited, that is, deposited by posting Dt 70 Kt 76.4 – salary deposited.

On the payroll, opposite the full name of those who did not receive wages, it is stamped or handwritten “deposited”. The cashier closes the payroll with two amounts: rubles paid and rubles deposited. This entry is certified by the cashier’s signature, after which the payroll is transferred to the accounting department.

The accountant, having checked it for the amount of the paid salary, issues a cash order, its number is recorded in the payroll. And for the amounts of deposited wages he writes out a register of unpaid wages. Then the data is transferred from the register to the ledger for recording deposited amounts.

The enterprise must deposit the deposited wages into a current account indicating the purpose of the contribution “Deposited wages”.

Accounting for transactions on account 70

Account 70 records transactions for all types of remuneration carried out by the enterprise in favor of its employees, including:

• salaries, bonuses, bonuses;
• sick leave, vacation pay, benefits;
• pensions for working pensioners, etc.

Depending on the department in which the employee is involved, wages and other payments may be reflected in the following records:

Payments to employees are recorded in the following records:

Other cases

On the debit of account 94:

On the credit of account 94:

Payment of salaries to branch employees

On September 30, 2015, the branch of Metallurg LLC paid salaries to employees:

• workers of the metal rolling shop - 412,500 rubles;
• economists of the financial department - 194,300 rubles.

On October 3, 2015, the branch received funds from Metallurg LLC to make payments.

The accountant of the head office of Metallurg LLC made the following entries in the accounting:

In the accounting of the branch of Metallurg LLC, salary payments are reflected by the following entries:

Postings to other subaccounts of account 73

Let's consider business transactions on account 73, for which subaccounts can be opened.
Account 73: debit entries

The account is debited whenever the company has a debt obligation to an employee or when the organization itself pays due compensation payments.

Calculation of salaries for employees of various departments

LLC "Rukodelnitsa" is engaged in the production of equipment for sewing workshops. Workers of Rukodelnitsa LLC are busy constructing a building that is planned to be used as a warehouse. Employees of Rukodelnitsa LLC have the opportunity to visit the swimming pool for free, which is listed on the company’s balance sheet.

In August 2015, a fire occurred in one of the production workshops of Rukodelnitsa LLC.

Based on the results of August 2015, employees of Rukodelnitsa LLC received the following salaries:

• workers of production workshops – 418,500 rubles;
• sales department employees – 212,300 rubles;
• workers involved in the construction of a building for a warehouse - 77,400 rubles;
• employees servicing the pool - 32,000 rubles;
• workers who eliminated the consequences of the fire - 88,200 rubles;
• employees of management departments – 133,800 rubles.

The accountant at Rukodelnitsa LLC reflected the salary calculation transactions with the following entries: