How is profit before tax determined?

Account 99 “Profits and losses” is intended to summarize information on the formation of the final financial result of the organization’s activities in the reporting year.

The final financial result (net profit or net loss) is made up of the financial result from ordinary activities, as well as other income and expenses. The debit of account 99 “Profits and Losses” reflects losses (losses, expenses), and the credit shows the profits (income) of the organization. A comparison of debit and credit turnover for the reporting period shows the final financial result of the reporting period.

Account 99 “Profits and losses” during the reporting year reflects:

the balance of other income and expenses for the reporting month - in correspondence with account 91 “Other income and expenses”;

the amount of accrued contingent income tax expense, permanent liabilities and payments for recalculation of this tax from actual profit, as well as the amount of tax penalties due - in correspondence with account 68 “Calculations for taxes and fees”.

At the end of the reporting year, when preparing annual financial statements, account 99 “Profits and losses” is closed. In this case, by the final entry of December, the amount of net profit (loss) of the reporting year is written off from account 99 “Profits and losses” to the credit (debit) of account 84 “Retained earnings (uncovered loss)”.

The construction of analytical accounting for account 99 “Profits and losses” should ensure the generation of data necessary for drawing up a profit and loss statement.

Account 99 “Profits and losses” corresponds with the accounts

Application of the chart of accounts: account 99

• How to reflect penalties and fines for late payment of insurance premiums in accounting?
  Account 99 “Profits and losses” during the reporting year are reflected along with profit and losses... statements of the annual report are reflected in account 99 “Profits and losses” in correspondence with... account 69. Moreover, in accordance with paragraph... with Regulation No. 34n and Instructions - on account 99 “Profits and losses”, either in accordance with the Recommendation, or on account 91 ...
• In which account (91 or 99) should sanctions for violation of tax laws be reflected?
  Account 99 “Profits and losses” in correspondence with account 68 “Calculations for taxes and ... account 99 “Profits and losses” in correspondence with account 68 “Calculations for taxes and ... minus those due from profits established in accordance with ... application (hereinafter - Chart of accounts and Instructions), approved by order of the Ministry of Finance... account 99 “Profits and losses” in correspondence with account 68 “Calculations for taxes and... accounting procedure (on account 91 or account 99) for economic entities...
• The deferred tax asset from the loss of the consolidated group of taxpayers of the
  Relevant Group of Taxpayers on account 99 “Profits and losses” in correspondence with account 78 “Settlements with...) and is taken into account when determining the net profit (loss) of the organization (without participating in the formation of profit (loss) of the organization... before tax). 5. Information on account balances 78... the tax base of the consolidated group of taxpayers, is written off to account 99 “Profits and losses” in the reporting period preceding the period...
• Advance payments for income tax.
  Examples of the Result is reflected in account 99 “Profits and losses”. The specified account also reflects the amounts... from the amount of accounting profit received for the reporting period and the current tax rate...). Further, regardless of the amount of taxable profit (loss), the organization’s accounting records reflect... profit determined on the basis of accounting profit (loss) and recognized for the purposes of PBU 18... in accounting as a debit to account 99 “Profits and losses” (subaccount for accounting...
• Reflection in accounting of fines for violation of tax laws
  in Account 99 “Profits and Losses” in correspondence with account 68 “Calculations for taxes and... period, minus those due from profits established in accordance with the legislation... for its application (hereinafter referred to as the Chart of Accounts and Instructions), approved by order of the Ministry of Finance of Russia... account 99 “Profits and losses” in correspondence with account 68 “Calculations for taxes and... a specific accounting procedure (on account 91 or account 99) is recommended for economic entities independently...
• Reporting for 2021: on how to correctly take into account the annual clarifications of the Ministry of Finance
  Profit, it is reflected in the debit of account 99 “Profits and losses” and credit 96 “Reserves for future expenses... etc.), as well as tax sanctions on them are reflected in the debit of the account 99 “Profits and losses...”. Fines and penalties paid by the taxpayer or... are reflected in expense accounts, account 99 is not used. Accordingly, in the report on... profits for social purposes, production development, etc. does not change the account balance...
• The procedure for transferring an organization from a JSC to an LLC in a simplified manner: the nuances of accounting and taxation.
  A separate) book of accounting for income and expenses of organizations and individual entrepreneurs using the simplified tax system... profit and loss accounts and distribution (direction) based on the decision of the founders of the amount of net profit... . That is, the JSC closes account 99 “Profit and Loss”, ... distributes, based on the decision of the founders, the amount of net profit and ... in the book of income and expenses of organizations and individual entrepreneurs using ...
• Accounting for factoring companies that attract external financing
  Providing financing services to Clients at the expense of Investors. OSNO - classic... on the date of accounting for goods and receipt of invoice 68/VAT (... order Turnover balance sheet Account/subaccount Debit Credit Balance... expenses) 99 (profits and losses) 0 Recognition of income, expenses from auxiliary activities 99 (profits and losses) 68/ ... on the date of accounting for the goods and receiving the invoice 68/VAT (... on the date of accounting for the goods and receiving the invoice 68/VAT (...
• Correction of significant errors
  The account in the records is the account for retained earnings (uncovered loss), that is, account 84 “Retained earnings ... “Cost of sales” account 90; Debit account 99 “Profit and loss”, Credit account 90 “Sales”, ... “Profit and loss”; Debit of account 84 “Retained profit (uncovered loss)”, Credit of account 99 “Profit and losses” - ... 500,000 rubles. – the amount of net profit has been adjusted. In... based on basic and diluted earnings (loss) per share (if...
• Separate accounting of expenses and revenues for the supply of products within the framework of the execution of state defense orders
  ... (hereinafter referred to as PBU 9/99) and PBU 10/99 “Expenses of the organization” ... (hereinafter referred to as PBU 10/99). A specific methodology for maintaining separate accounting...hereinafter - Chart of Accounts)). Based on the Chart of Accounts, overhead and commercial expenses of the trade... (clause 21 of PBU 4/99 “Accounting statements of an organization”... (hereinafter referred to as PBU 4/99)). The organization's income and expenses are reflected in... PBU 4/99). A more detailed specification of income and expenses is carried out ... a different procedure for accounting for profit and loss from the general one. For example, maintaining a separate...
• Accounting rules for “kids” and non-profit organizations are simplified
  Period 99 “Profits or losses” (90 “Sales” - when using such an account) 20 (other accounts) Please note... directly related to the acquisition, construction and manufacture of fixed assets are included... an enterprise can charge depreciation of production and business equipment at a time in... account 20 (other accounts for recording production costs - when used) and credit accounts... settlements with contractors, payroll personnel, etc...
• Imported goods have deteriorated: how to take into account customs VAT, disposal costs and insurance compensation
  . Non-operating income taken into account when taxing profits, the Ministry of Finance of Russia recognizes the possibility of simultaneous... with clause 2 of PBU 9/99 “Income of the organization”... (hereinafter referred to as PBU 9/99) the organization’s income is recognized as an increase in economic... (clause 8 of PBU 9/99), which are accepted for accounting... of the organization" (hereinafter referred to as PBU 10/99); the organization’s expenses are recognized as a decrease in economic... production inventories, which presupposes the attribution of losses to the account of the guilty parties and only in volume…
• Pledge.
  Accounting and taxation Particularly interest, penalties, compensation for losses caused by delay in performance, and... losses caused as a result of this event in the insured property (to pay... the pledged property when taxing profits. Therefore, there is a risk that... the pledged property when taxing profits in full. ... in particular interest, penalties, compensation for losses caused by delay in performance, and... 99). The cost of materials specified in the pledge agreement and previously reflected in the off-balance sheet account...
• Accounting for expenses by their nature and purpose
  Accounting for expenses is regulated by PBU 10/99 “Expenses of the organization.” According to paragraph…. Clause 8 of PBU 10/99 defines the grouping of expenses according to ordinary... a direct instruction in PBU 10/99 to attribute depreciation deductions to... expenses disclosed expenses financed by state aid. True, these are not... rules for classifying expenses. According to paragraphs 99 - 105 IAS 1 “... vary in frequency, potential for profit or loss and predictability. This analysis appears...
• Additional capital: formation, use and accounting procedure
  Additional valuation of the property to account for the retained earnings (uncovered loss) of the organization upon disposal... a possible markdown will have to be carried out at the expense of retained earnings. Moreover, it may turn out to be... an accounting entry to the debit of account 83 and the credit of account 02 “Depreciation of fixed assets... sales as part of final turnover 99 91-9 4,139.91... at the expense of the authorized capital or profit. According to the author, replenishment and spending operations...

This allows you to create a preliminary working balance that reflects the real financial position of the organization. Knowing all the distinctive features that the 99 “Profit and Loss” account has, young professionals will be able to understand all the features of accounting. Do not forget about PBU, as well as reference and legal systems, without which the legal activities of enterprises are impossible. 18 Superfoods for a Healthy Heart Today we're going to talk about foods that should be in your diet on a regular basis. All of them will make the heart work without interruption... Healthy eating How to look younger: the best haircuts for those over 30, 40, 50, 60 Girls in their 20s don’t worry about the shape and length of their hair. It seems that youth is created for experiments with appearance and daring curls. However, already after...

Debit 99

To form the final financial result, account 99 “Profits and losses” is used, the debit of account 99 shows losses, the credit shows profits. The final results of activity for the year are shown in the balance sheet - detailed completion of the balance sheet and a completed sample. At the end of each month, the financial result from the activities for the past month is formed on accounts 90 and 91, the resulting final profit or loss is written off from these accounts to accounting account 99 with the following entries:

• D90/9 K99 – profit from ordinary activities is reflected,
• D99 K90/9 – losses from ordinary activities are reflected,
• D91/9 K99 – profit from other income and expenses is reflected,
• D99 K91/9 – losses from other income and expenses are reflected.

During the calendar year, profits and losses accumulate on account 99 from month to month.

Example 2. Calculation of EBIT for one year in three stages for Promtekhstroy LLC

The calculation option under consideration includes: calculation of VP, profit from sales, then EBIT. The data used in the calculations are conditional and taken from financial data. report of the manufacturing enterprise Promtekhstroy LLC.

Calculation of VP (revenue - cost of sales): 150,100 – 140,019 = 10,081 thousand rubles. rub.

Calculation of profit from sales (VP ​​- commercial, administrative expenses): 10,081 – 5600 – 1400 = 3,081 thousand rubles. rub.

Calculation of EBIT (profit from sales + income from participation in other companies + % receivable – % payable + other income – other expenses): 3,081 + 19 +20 – 5 + 215 – 189 = 3,141 thousand rubles. rub.

If the result of such calculations is negative or shows a downward trend in the indicator, it is appropriate to conduct a comprehensive financial analysis. It involves calculation, assessment of liquidity ratios, autonomy, and other required parameters.

Characteristics of account 99 in accounting

Accounting accounts are designed to record all monetary transactions. This review will examine in detail account 99 “Profit and Loss”. The reader will learn about what functions it performs, whether it can have its own categories, how to work with it and close it. The information is accompanied by examples to help better explain the topic. Purpose of account 99 Every enterprise works to achieve the main goal - increasing profits. Financial result is the sum of all income from each type of activity.

To sell goods or services, you will need to invest money, but how profitable this will be in the reporting period will become known after summarizing all the information about cash costs and receipts.

Account 99 “profit and loss”

Attention

Postings for closing account 99 at the end of the year:

• D84 K99 – final financial result for the year – loss;
• D99 K84 – final financial result for the year – profit.

Reformation of the balance sheet Reformation of the balance sheet is the closure of accounts related to the formation of the financial result of the company. Closing accounts means resetting their final balance to zero. The reform concerns the following accounts: 90 “Sales”, 91 “Other income and expenses”, 99 “Profits and losses”.

Based on the results of the reformation of the balance sheet on account 99, the final profit or loss is identified and transferred to account 84 by the transactions indicated above. The Reformation allows you to end the year, reset your accounts and start accounting in the new year with a “clean slate.”

Sales profit postings

Reflection in accounting

Accounting account 90 is responsible for posting profits or expenses from sales - a specialized calculation system used to display and analytically characterize the total indicators of profits and expenses received by the enterprise for the reporting period. Based on the account, the financial and economic result of the company’s activities is formed.

Accounting account 91 is a special calculation system that shows and analyzes information about non-core profits or expenses.

Account 99 – closing the results of profit and loss for the reporting period.

Reforming the balance sheet means writing off profits and losses at the end of the year and resetting balances to zero using account 90/91. The goal is to obtain a financial result based on the results. For this, indicators are taken into account: main production and other operations.

The financial result of the year has a cumulative system, therefore, its final result is summed up with data for previous periods.

The reformation procedure includes the following stages:

• write-off of expenses spent on production and sales
• resetting account balance 90/91
• determination of loss/profit and subsequent write-off on account 99

Features of account 90

The account generates and analyzes the total profit and scale of products sold for key sections of work:

• non-industrial and industrial
• construction, research, design
• rental costs
• sale of products, including our own production
• intellectual property

Posting diagram for account 90

Score 90

A key feature of the account is that it is completely closed at the end of the year. During the entire period, monthly, the difference (balance) accumulates in the subaccounts. In the final record, the subaccounts are closed and the overall financial total is added up.

Subaccounts

The algorithm and procedure for posting to account 90 is carried out using a number of sub-accounts:

• 90.01.1 - profit from production with basic taxes
• 90.01.2 - profit on individual positions with individual taxation
• 90.02.1 - calculation of the cost of trade turnover with the main tax
• 90.02.2 - calculation of cost of sales for items with personal taxes
• 90.03 - value added taxation
• 90.04 - excise taxes
• 90.05 - duty
• 90.07.1 - sales costs for working with taxes
• 90.07.2 - sales costs for individual items with individual taxes
• 90.08.1 - management costs with taxes
• 90.08.2 - management costs for certain items with individual taxes
• 90.09 - income and loss from sales

The credit chapter displays the profit from the sale, the debit chapter records the cost and displays the VAT on the sale. At the end of the month, the results and calculation of the financial achievements of the products sold during the month are summed up: profit on debit and loss on credit.

The final result of the accountant's reconciliation of account 90/91 will determine the financial outcome of the company and reflect the presence of profit or loss.

Tags: asset, balance sheet, accountant, disposal, capital, loan, tax, order, expense, reserve, write-off

Formation of the final financial result

This is exactly what the 99 account is intended for, which can reflect:

• increase or decrease in income from the main activity (D90 K99);
• the balance of other expenses and income for the reporting period (D91 K99);
• the impact of emergency situations on economic activities (force majeure, accidents);
• accrual of amounts intended for calculating taxes (interaction with account 68).

Is it possible to open new subaccounts? According to the instructions, the account in question has no categories. An accountant can create them independently, taking into account the requirements of the enterprise (analysis, control, reporting).

Example 1. Calculation of EBIT for one year using the basic formula for Promtekhstroy LLC

During the year of operation, the production enterprise Promtekhstroy LLC showed the following results:

1. Profit from sales: RUR 2,115 thousand. rub.
2. Income from core activities: RUR 600 thousand. rub., and “basic” expenses: 150 thousand rubles. rub.
3. Other income amounted to: RUR 89 thousand. rub., etc. expenses: 600 thousand rub. rub.

Based on the above data, EBIT should be calculated. Calculation is carried out according to the standard general formula: profit from sales + income from participation in other companies + % receivable – % payable + etc. income - etc. spending.

When calculating, the indicators (expenses and income) that the enterprise has are simply substituted into the formula. The calculation result will be as follows. EBIT (thousand Russian rubles) = 2115 + 600 + 89 – 150 – 600 = 2,054.

Formation of financial results for the year

The same entry will reflect the accrual of fines and penalties to the budget for income tax, VAT and other taxes. Sanctions to extra-budgetary funds (for example, the Pension Fund) should be calculated as follows: Debit 99 – Credit 69 “Calculations for social insurance and security”. If accounting for profit calculations is carried out in accordance with PBU 18/02, then debit account 99 can also correspond, in particular, with account 09 “Deferred tax assets”. Thus, accounting entry D99 K09 is made when writing off a deferred tax asset in the event of disposal of the object for which it was accrued. Closing account 99 At the end of the year, account 99 is reset with the difference being assigned to account 84 “Retained earnings (uncovered loss)”: the so-called “balance sheet reformation” occurs.

“Prohibited” payments from retained earnings

Sometimes the owners of an organization make decisions to pay bonuses to employees, financial assistance, and the acquisition of fixed assets at the expense of profits. Some decide to create so-called consumption and accumulation funds and charitable foundations.

The laws on JSC and LLC do not provide for any payments from profits to anyone other than the owners. And account 84 “Retained earnings (uncovered loss)” is the account of the owners, and only they have the right to receive dividends.

The Russian Ministry of Finance has also repeatedly indicated that account 84 is not intended to reflect all kinds of social and charitable expenses, payments of material assistance and bonuses (see, for example, letters of the Russian Ministry of Finance dated June 19, 2008 No. 07-05-06/138, dated December 19, 2008 No. 07-05-06/260).

Expenses of an organization are recognized as a decrease in economic benefits as a result of the disposal of assets (cash, other property) and (or) the occurrence of liabilities, leading to a decrease in the capital of this organization, with the exception of a decrease in contributions by decision of participants (owners of property) (clause 2 of PBU 10/99 ).

Organizational expenses for sporting events, recreation, entertainment, cultural and educational events and other similar events, as well as transfers of funds to charity, are other expenses and should be accounted for in account 91 “Other income and expenses.” In other words, any disposal of assets (except for dividends) is an expense of the current period (clause 2 of PBU 10/99). Such costs have nothing to do with the organization’s net profit. They cannot be debited to account 84; this is contrary to current accounting regulations.

Account 99 “profit and loss”

Correspondence on the loan Account 99 “Profits and losses” interacts on the loan with the following categories:

• "Materials" (10).
• “Financial transactions with suppliers and contractors” (60).
• “Currency and current accounts” (52, 51).
• “Retained earnings” (84).
• “Sales of goods” (90).
• “Shortages and damage from damaged valuables” (94).
• “Reserves for future expenses” (96).
• “Special bank accounts” (55).
• “Intra-household calculations” (79).
• “Financial transactions with creditors and debtors” (76).
• “Other expenses and income” (91).
• “Settlements with employees for various operations” (73).

Loan transactions The table provides some examples to help you understand what kind of loan entry account 99 may have, reflecting the profit (income) of the company. D10 K99 Identification of excess materials.

Closing debit balance on account 99 profit and loss

During the reporting year, account 99 “Profits and losses” reflects: - profit or loss from ordinary activities - in correspondence with account 90 “Sales”; - balance of other income and expenses for the reporting month - in correspondence with account 91 “Other income and expenses”; - losses, expenses and income due to emergency circumstances of economic activity (natural disaster, fire, accident, nationalization, etc.) - in correspondence with accounts of material assets, settlements with personnel for wages, cash, etc. . Extraordinary income is considered to be income arising as a consequence of extraordinary circumstances of economic activity (natural disaster, fire, accident, nationalization, etc.): insurance compensation, the cost of material assets remaining from the write-off of assets unsuitable for restoration and further use, etc. . Similarly, profit and loss are identified for other types of activities, income and expenses from which are recorded in account 91: Debit 91 – Credit 99 means that profit was generated for other activities at the end of the month. Debit 99 – Credit 91 means that there was a loss for other income and expenses for the month. Account 99 - for calculations of income tax Account 99 during the year also reflects the amounts of accrued conditional expenses and income for income tax, permanent tax liabilities and assets and payments for recalculation of this tax from actual profit, as well as amounts due for payment tax sanctions.

Thus, the accrual of a conditional income tax expense in accordance with PBU 18/02, as well as simply income tax on the basis of a declaration, if calculations are not kept in accordance with PBU 18/02, will look like this: Debit 99 – Credit 68.

Each enterprise has the most important and most important goal of its activities - a systematic increase in profits. The financial result of a work process can only be assessed by summing up the income of each area of ​​the organization. This is an important point, since only on the basis of this information should you make an investment decision. Acting at random is fraught with serious risks and unpleasant consequences. This is why it is so important to track information about cash costs and receipts. This is exactly the kind of reporting available on account 99.

Throughout the entire working year, data on the organization’s profits and losses is stored in this account. Operations are taken into account not only in the main activity of the company, but also in all other areas. At the very end of the working year, a report is generated that compares credit and debit data. Account 99 is eventually closed by writing off the remaining funds on account 84.

The count 99 itself is considered active-passive. In its debit you can see the loss resulting from financial transactions, and in its credit you can see the profit. All basic characteristics of account 99 can be viewed in the Chart of Accounts, which was established by order of the Ministry of Finance under number 94n dated October 31, 2000.

According to the above-mentioned order, throughout the entire working year, information on the following aspects of the organization’s activities is accumulated and stored on account 99:

1. Increase and decrease in income from the main activity of the organization. This can be seen in the wiring of the Dt90 Kt99.

2. The balance of all other income and expenses incurred during the reporting period. Wiring Dt91 Kt99.

3. The impact of unexpected and unplanned situations on the business activities of the company. We are talking about all kinds of force majeure, industrial accidents, etc.

4. Amounts intended for calculating tax payments. Both fixed income tax liabilities, penalties and other charges are taken into account. Wiring Dt68 Kt99.

If an organization is engaged in the field of agriculture, then, according to the above-mentioned Chart of Accounts, when comparing debit and credit turnover on account 99, the following results of financial activities appear:

1. Force majeure related to sudden natural disasters, fire, etc. In this case, the transactions selected are those on which the corresponding expenses are noted.

2. Based on the first point, it is possible to receive income in the event of unplanned situations. For example, insurance claims related to compensation for destruction caused by natural disasters. Income from the sale of materials obtained during the dismantling of unfit for use buildings and structures is also possible.

Calculation of profit (loss) before tax and reporting

The amount of profit (loss) received before tax is included in line 2300 of the Financial Results Report (Appendix No. 1 to Order of the Ministry of Finance of the Russian Federation dated July 2, 2010 No. 66n). The loss in the report is shown in brackets, which means a negative indicator.

The pre-tax financial result is calculated in several stages, and if the result is positive, then a profit is made, if negative, a loss:

• First you need to determine the gross profit (loss), for which the amount of the cost of sales of goods or services is subtracted from the amount of revenue, excluding excise taxes and VAT. The cost includes expenses associated with core activities, minus VAT and excise taxes. The result is reflected in line 2100 of the Financial Results Report.
• Next, profit (loss) from sales is calculated (line 2200 of the Financial Results Report): commercial and administrative expenses are subtracted from the gross profit.
• Profit (loss) before tax (line 2300 of the Financial Results Report) is determined as follows: income from participation in other legal entities, interest receivable and other income are added to the amount of profit (loss) from sales, and then interest payable and other income are deducted from the amount received. expenses.

The profit received before tax is an indicator that is further reduced by the amount of tax (line 2410 of the Financial Results Report). If the company is a payer of income tax, its amount must correspond to the tax specified in the declaration. Those who work in a special regime must indicate on line 2410 the amount of “their” tax - “imputed”, tax under the simplified tax system, unified agricultural tax (attachment to the letter of the Ministry of Finance of the Russian Federation dated 02/06/2015 No. 07-04-06/5027).

Basic postings

According to Order of the Ministry of Finance No. 94n, the following correspondence from account 99 can be distinguished:

Dt 99 Kt 01, 03, 07, 08, 10, 11, 16, 19, 20, 21, 23, 25, 26, 28, 29, 41, 43-45, 50-52, 58, 68-71, 73 , 76, 79, 84, 90, 91, 97.

Dt 10, 50-52, 55, 60, 73, 76, 79, 84, 90, 91, 94, 96 Kt 99.

The debit shows expenses, and the credit shows income. Comparison of turnover for the required reporting period allows you to see the final financial result and understand whether the company’s activities are profitable.

Debit 99 - penalties

Account 99 allows you to see all tax debts accrued to the organization, as well as write-offs of the necessary amounts to pay off outstanding debts. Moreover, it is worth considering that when transferring fines to the state budget, the posting Dt68 Kt51 is used. And when calculating tax sanctions - Dt99 Kt68.

It is necessary to distinguish between fines and penalties, since these are completely different concepts, and information on them is reflected in different accounts. A fine is accrued immediately when one or more reasons arise (an accounting report not submitted on time, unpaid tax or insurance premium, deliberate reduction of tax liability). Its size is strictly determined by law. Penalty is a penalty payment that is calculated for each day of overdue payment. The percentage ratio is 1/300 of the refinancing rate of the Central Bank of the Russian Federation.

99 accounting account shows only fines, but not penalties, which is regulated by Article 114 of the Tax Code of the Russian Federation. Penalties can be seen on the wiring Dt91.2 Kt68.

The profit that remains after taxes have been paid and has not yet been spent on paying dividends to shareholders, has not been distributed to replenish the authorized capital or has not been used as funds to pay off uncovered losses is called undistributed (NRP)

.

An uncovered loss is a financial loss of an organization of a negative nature incurred during the reporting year or previous years.

List of subaccounts and features

Account 84 is used to display the financial results of the company's activities

from the moment of its creation to the time of liquidation. It is replenished during the period when the balance sheet changes - at the end of the reporting year.

The decision on the disposal of funds can only be made by the owners of the enterprise, most often through a meeting and voting, after which everything is certified by a specially drawn up protocol and certified by each shareholder or participant.

The amount of net profit received is shown as a credit, and the amount of uncovered losses is shown as a debit. Count 84 is active-passive

.

List of subaccounts

:

• 84.01
  – profit to be distributed;
• 84.02
  – the amount of loss to be covered;
• 84.03
  – profit of undistributed type, which is in circulation;
• 84.04
  - displays the amount of spent retained income that has gone through the process of being converted into goods or, conversely, through depreciation deductions.

Funds transferred to special funds and spent on expenses such as privileged expenses, corporatization, payments and other material incentives for employees - they must be displayed and accounted for in the balance sheet in the amount of the authorized capital.

Accounting for account 84 is necessary to combine data on profits received that have not yet been capitalized and losses that have not been received.

Compilation

:

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12.1.1. What regulatory documents determine the accounting procedure for the formation and distribution of profits?

♦ Tax Code of the Russian Federation.

♦ Accounting regulations “Income of the organization” (PBU 9/99), approved by order of the Ministry of Finance of the Russian Federation dated May 6, 1999 No. Z2n, as amended by orders of the Ministry of Finance of the Russian Federation dated December 30, 1999 No. 107n, dated March 30. 2001 No. 27n, dated September 18, 2006, No. 116n, dated November 27, 2006, No. 156n;

♦ Accounting Regulations “Organization Expenses” (PBU 10/99), approved by order of the Ministry of Finance of the Russian Federation dated May 6, 1999 No. ЗЗн, as amended by orders of the Ministry of Finance of the Russian Federation dated December 30, 1999 No. 107n, dated March 30. 2001 No. 27n, dated September 18, 2006, No. 116n, dated November 27, 2006, No. 156n;

♦ Accounting Regulations “Accounting for Income Tax Calculations” (PBU 18/02), approved by Order of the Ministry of Finance of the Russian Federation dated November 19, 2002 No. 114n;

♦ Order of the Ministry of Finance of the Russian Federation dated March 30, 2001.

No. 27n “On introducing amendments and additions to regulatory legal acts on accounting”;

♦ Order of the Ministry of the Russian Federation for Taxes and Duties dated January 5, 2004 No. BG-3-23/1 “On approval of the tax return form for the income tax of a foreign organization and introducing changes and additions to the instructions for filling it out”;

♦ Order of the Ministry of the Russian Federation for Taxes and Duties dated December 23, 2003 No. BG-3-23/ [email protected] “On approval of the tax return form on income received by a Russian organization from sources outside the Russian Federation, and instructions for filling it out ";

♦ Order of the Ministry of Finance of the Russian Federation dated 02/07/2006 No. 24n “On approval of the tax return form for corporate income tax and the procedure for filling it out” (as amended by Order of the Ministry of Finance of the Russian Federation dated 01/09/2007 No. 1n).

12.1.2. Which synthetic accounts are used to record profit generation?

According to the Chart of Accounts, all expenses of an organization must either be capitalized (included in the cost of assets) or written off to the profit and loss account (directly or through the cost of production). Those expenses that are directly related to the acquisition (creation) of assets are subject to capitalization. Those that are incurred after the start of use of these assets should be charged to the profit and loss account as expenses of the reporting period.

The cost of products (works, services) must include all expenses for ordinary activities. Other expenses should be charged directly to account 91 “Other income and expenses”.

For profit tax purposes, only those expenses that are provided for by the Tax Code of the Russian Federation and other regulatory documents governing the procedure for paying profit tax will be taken into account.

This procedure for accounting for expenses will provide a more accurate determination of both the value of assets and the value of the final financial result of the organization’s activities.

To summarize information on the formation of the final financial result of the enterprise’s activities in the reporting year, account 99 “Profits and losses” (active-passive account) is used. Business transactions are reflected on account 99 on an accrual basis from the beginning of the year (cumulative principle).

The final financial result (net profit or net loss) is made up of the financial result from ordinary activities, as well as other income and expenses, including extraordinary ones. The debit of account 99 “Profits and Losses” reflects losses (losses, expenses), and the credit reflects the profits (income) of the organization. A comparison of debit and credit turnover for the reporting period shows the final financial result of the reporting period.

Account 99 “Profits and losses” during the reporting year reflects:

♦ profit from ordinary activities in accounting entries:

D 90 “Sales” subaccount 90-9 “Profit/loss from sales”,

K 99 “Profits and losses”;

♦ loss from ordinary activities with accounting entries:

D 99 “Profits and losses”,

To 90 “Sales” subaccount 90-9 “Profit/loss from sales”;

♦ balance of other income and expenses for the reporting month: other income is reflected in accounting entries in the accounting accounts:

D 91 “Other income and expenses” subaccount 91-9 “Balance of other income and expenses”,

K 99 “Profits and losses”;

♦ other expenses are reflected in accounting entries in the accounting accounts:

D 99 “Profits and losses”,

To 91 “Other income and expenses” subaccount 91-9 “Balance of other income and expenses”;

♦ amount of accrued contingent income tax expense for the reporting period:

D 99 “Profits and losses” subaccount “Conditional tax expense for income tax”,

To 68 “Calculations for taxes and fees” subaccount “Income Tax”.

♦ amount of accrued conditional income tax:

D 68 “Calculations for taxes and fees” subaccount “Calculations with the budget for income tax”,

To 99 “Profits and losses” subaccount “Conditional tax income for income tax”.

At the end of the reporting year, when preparing annual financial statements, account 99 “Profits and losses” is closed. In this case, by the final entry of December, the amount of net profit of the reporting year is written off by entries in the accounting accounts:

D 99 “Profits and losses”,

K 84 “Retained earnings (uncovered loss).”

The amount of loss for the reporting year is written off by entries in the accounting accounts:

D 84 “Retained earnings (uncovered loss)”,

K 99 “Profits and losses.”

12.1.3. What is the composition of income and expenses from various activities?

The composition of income and expenses from ordinary activities, as well as other income and expenses in accordance with PBU 9/99 and 10/99 is presented in the table.

The construction of analytical accounting for account 99 “Profits and losses” should ensure the generation of data necessary for drawing up a profit and loss statement.

12.1.4. Which synthetic accounting accounts are used to generate the financial result from ordinary activities? Account 90 “Sales” is intended to summarize information on income and expenses associated with the organization’s ordinary activities, as well as to determine the financial result for them. This account reflects, in particular, revenue and cost for:♦ finished products and semi-finished products of own production;♦ works and services of an industrial nature;♦ works and services of a non-industrial nature;♦ purchased products (purchased for completion);♦ construction, installation, design -prospecting, geological exploration, scientific research and similar work;♦ goods;♦ services for the transportation of goods and passengers;♦ forwarding and loading and unloading operations;♦ communication services;♦ provision for a fee for temporary use (temporary possession and use) their assets under a lease agreement (when this is the subject of the organization’s activities);♦ provision for a fee of rights arising from patents for inventions, industrial designs and other types of intellectual property (when this is the subject of the organization’s activities);♦ participation in the authorized capital of other organizations ( when this is the subject of the organization’s activities), etc. As a rule, the usual activities of an enterprise are specified in its charter. It often happens that in the “Types of activities” section it is written that an enterprise can carry out “any activity not prohibited by law.” In this case, income is considered to be received from ordinary activities if the enterprise receives certain income regularly and their amount exceeds 5% of the total revenue for the reporting period. When recognized in accounting, the amount of revenue from the sale of goods, products, performance of work, provision of services and other is reflected in the credit of account 90 “Sales” and the debit of account 62 “Settlements with buyers and customers”. At the same time, the cost of goods sold, products, works, services and others is written off from the credit of accounts 43 “Finished Products”, 41 “Goods”, 44 “Sales Expenses”, 20 “Main Production” and others to the debit of account 90 “Sales”. Subaccounts can be opened to account 90 “Sales” 90-1 “Revenue”, 90-2 “Cost of Sales”, 90-3 “Value Added Tax”, 90-4 “Excise Taxes”, 90-9 “Profit/Loss” from sales." Subaccount 90-1 “Revenue” takes into account receipts of assets recognized as revenue. Subaccount 90-2 “Cost of sales” records the cost of sales, for which revenue is recognized in subaccount 90-1 “Revenue” . Subaccount 90-3 “Added Tax cost" takes into account the amount of value added tax due from the buyer (customer). Subaccount 90-4 "Excise taxes" takes into account the amount of excise taxes included in the price of sold products (goods). Organizations that pay export duties can open an account 90 " Sales" subaccount 90-5 "Export duties" for accounting for the amounts of export duties. Subaccount 90-9 "Profit/loss from sales" is intended to identify the financial result (profit or loss) from sales for the reporting month. Entries for subaccounts 90-1 " Revenue", 90-2 "Cost of sales", 90-3 "Value added tax", 90-4 "Excise taxes" are carried out cumulatively during the reporting year. By monthly comparison of the total debit turnover in subaccounts 90-2 “Cost of sales”, 90-3 “Value added tax”, 90-4 “Excise taxes” and credit turnover in subaccount 90-1 “Revenue”, the financial result (profit or loss) is determined. from sales for the reporting month. This financial result is written off monthly (with final turnover) from subaccount 90-9 “Profit/loss from sales” to account 99 “Profits and losses”. Thus, the synthetic account 90 “Sales” does not have a balance as of the reporting date. At the end of the reporting year, all subaccounts opened to account 90 “Sales” (except for subaccount 90-9 “Profit/loss from sales”) are closed by internal entries in the subaccount 90-9 “Profit/loss from sales.” This is done as follows. The credit balance of subaccount 90-1 “Revenue” is closed with accounting entries: D 90-1 “Revenue”, K 90-9 “Profit/loss from sales” - subaccount 90-1 is closed at the end of the year. Debit balance of subaccounts 90-2 “Cost of sales”, 90-3 “Value added tax”, 90-4 “Excise duties”, 90-5 “Export duties” at the end of the year is closed with accounting entries: D 90-9 “Profit/loss from sales” , K 90-2 “Cost of sales”, K 90-3 “Value added tax”, K 90-4 “Excise taxes”, K 90-5 “Export duties”. As a result of the accounting entries made, the debit and credit turnovers on the subaccounts of account 90 will be equal, therefore, as of January 1 of the next year, the balance both on account 90 as a whole and on all subaccounts opened to it will be equal to zero.

12.1.5. Which synthetic accounts are used to record other income and expenses?

Account 91 “Other income and expenses” is intended to summarize information on other income and expenses (operating, non-operating) of the reporting period, except for extraordinary income and expenses.

In the credit of account 91 “Other income and expenses” during the reporting period the following is reflected:

♦ receipts related to the provision for a fee for temporary use (temporary possession and use) of the organization’s assets - in correspondence with the accounts of settlements or cash;

♦ receipts related to the provision for a fee of rights arising from patents for inventions, industrial designs and other types of intellectual property - in correspondence with accounts of settlements or cash;

♦ receipts related to participation in the authorized capitals of other organizations, as well as interest and other income on securities - in correspondence with settlement accounts;

♦ profit received by the organization under a simple partnership agreement - in correspondence with account 76 “Settlements with various debtors and creditors” (sub-account “Settlements for due dividends and other income”);

♦ receipts related to the sale and other write-off of fixed assets and other assets other than cash in Russian currency, products, goods - in correspondence with accounts for settlements or cash;

♦ receipts from operations with containers – in correspondence with container accounting and settlement accounts;

♦ interest received (receivable) for the provision of funds to the organization for use, as well as interest for the use by a credit organization of funds held in the organization’s account with this credit organization - in correspondence with the accounts of financial investments or funds;

♦ fines, penalties, penalties for violation of the terms of contracts, received or recognized for receipt - in correspondence with the accounts of settlements or cash;

♦ receipts related to the gratuitous receipt of assets - in correspondence with the account for deferred income;

♦ receipts for compensation of losses caused to the organization - in correspondence with settlement accounts;

♦ profit of previous years, identified in the reporting year - in correspondence with the accounts of settlements;

♦ amounts of accounts payable for which the statute of limitations has expired - in correspondence with accounts payable accounts;

♦ exchange rate differences - in correspondence with accounts for cash, financial investments, settlements, etc.;

♦ other income.

The debit of account 91 “Other income and expenses” during the reporting period reflects:

♦ expenses associated with the provision for a fee for temporary use (temporary possession and use) of an organization’s assets, rights arising from patents for inventions, industrial designs and other types of intellectual property, as well as expenses associated with participation in the authorized capital of other organizations, – in correspondence with cost accounts;

♦ the residual value of assets for which depreciation is calculated and the actual cost of other assets written off by the organization - in correspondence with the accounts of the corresponding assets;

♦ expenses associated with the sale, disposal and other write-off of fixed assets and other assets other than cash in Russian currency, goods, products - in correspondence with cost accounts;

♦ expenses for operations with containers - in correspondence with cost accounts;

♦ interest paid by an organization for providing it with funds (credits, borrowings) for use - in correspondence with the accounts of settlements or funds;

♦ expenses associated with payment for services provided by credit institutions - in correspondence with settlement accounts;

♦ fines, penalties, penalties for violation of the terms of contracts, paid or recognized for payment - in correspondence with the accounts of settlements or cash;

♦ expenses for the maintenance of production facilities and mothballed facilities - in correspondence with cost accounts;

♦ compensation for losses caused by the organization - in correspondence with settlement accounts;

♦ losses of previous years recognized in the reporting year - in correspondence with the accounts of settlements, depreciation, etc.;

♦ contributions to reserves for the depreciation of investments in securities, for a decrease in the value of material assets, for doubtful debts - in correspondence with the accounts of these reserves;

♦ amounts of receivables for which the statute of limitations has expired, other debts that are unrealistic for collection - in correspondence with the accounts receivable;

♦ exchange rate differences - in correspondence with accounts for cash, financial investments, settlements, etc.;

♦ expenses associated with the consideration of cases in the courts - in correspondence with settlement accounts, etc.;

♦ other expenses.

Sub-accounts can be opened to account 91 “Other income and expenses”

91-1 “Other income”,

91-2 “Other expenses”,

91-9 “Balance of other income and expenses.”

Subaccount 91-1 “Other income” takes into account receipts of assets recognized as other income.

Subaccount 91-2 “Other expenses” takes into account other expenses.

Subaccount 91-9 “Balance of other income and expenses” is intended to identify the balance of other income and expenses for the reporting month.

Entries in subaccounts 91-1 “Other income” and 91-2 “Other expenses” are made cumulatively during the reporting year. By monthly comparison of debit turnover in subaccount 91-2 “Other expenses” and credit turnover in subaccount 91-1 “Other income”, the balance of other income and expenses for the reporting month is determined. This balance is debited from the subaccount monthly (in final turns).

91-9 “Balance of other income and expenses” to account 99 “Profits and losses”. Thus, synthetic account 91 “Other income and expenses” does not have a balance as of the reporting date.

The balance of other income and expenses shows the financial result from other activities of the enterprise: profit or loss. If the amount of income exceeds the amount of expenses, then the company has made a profit. This amount is reflected in the final turnover of the month in the debit of subaccount 91-9 and the credit of account 99 “Profits and losses”:

D 91-9 “Balance of other income and expenses”

To 99 “Profits and losses” – profit from other activities is reflected.

If the amount of income was less than the amount of expenses, then the company suffered a loss.

This amount is reflected in the final turnover of the month on the credit of subaccount 91-9 and the debit of account 99 “Profits and losses”:

D 99 “Profits and losses”,

K 91-9 “Balance of other income and expenses” - reflects the loss from other activities.

At the end of the reporting year, all subaccounts opened to account 91 “Other income and expenses” (except for subaccount 91-9 “Balance of other income and expenses”) are closed with internal entries to subaccount 91-9 “Balance of other income and expenses”. The following accounting entries are made.

The credit balance of subaccount 91-1 is closed:

D 91-1 “Other income”,

To 91-9 “Balance of other income and expenses” - subaccount 91-1 at the end of the year.

The debit balance of subaccount 91-2 is closed:

D 91-9 “Balance of other income and expenses”,

To 91-2 “Other expenses” - subaccount 91-2 at the end of the year.

12.1.6. What is meant by income and expenses from non-operating operations?

Income and expenses from non-sales operations should be understood as income and expenses of an enterprise not directly related to the production and sale of products (works, services) within the framework of statutory activities. For accounting purposes, the organization independently recognizes receipts as income from ordinary activities or other income based on the requirements of the Regulations, the nature of its activities, the type of income and the conditions for their receipt.

The procedure for the formation of non-operating expenses and income subject to accounting for tax purposes is established by the Tax Code of the Russian Federation (Article 250 of the Tax Code of the Russian Federation).

12.1.7. How are exchange rate differences reflected in accounting?

Positive exchange rate differences on foreign currency accounts and on transactions in foreign currencies are reflected by entries in the accounting accounts:

D 52 “Currency accounts”,

To 91 “Other income and expenses” subaccount 91-1 “Other income”.

Negative exchange rate differences on foreign currency accounts and transactions in foreign currency are reflected in entries in the accounting accounts:

D 91 “Other income and expenses” subaccount 91-2 “Other expenses”,

K 52 “Currency accounts”.

12.1.8. Is it possible to write off losses from writing off accounts receivable after the expiration of the statute of limitations and other debts that are unrealistic for collection?

In accordance with the Civil Code of the Russian Federation, the statute of limitations is three years. Accounts receivable are written off by accounting entries in the accounts:

D 91 “Other income and expenses” subaccount 91-2 “Other expenses”

K 76 “Settlements with various debtors and creditors.”

A debt can be written off as a loss for subsequent taxation only in accordance with a documented order or instruction from the head of the enterprise, adopted on the basis of an inventory report or other document submitted by the chief accountant, with all the information on the debt being written off available.

Writing off receivables at a loss does not mean canceling them. This debt must be reflected in off-balance sheet account 007 “Debt of insolvent debtors written off at a loss” within five years from the date of write-off.

If an enterprise creates reserves for doubtful debts, then such receivables are written off primarily at the expense of the created reserves.

12.1.9. How are losses from theft, the perpetrators of which have not been identified by a court decision, reflected in accounting?

The write-off is reflected in the accounting entries in the accounts:

D 91 “Other income and expenses” subaccount 91-2 “Other expenses”,

To 73 “Settlements with personnel for other operations” subaccount 73-2 “Settlements for compensation of material damage”.

12.1.10. How should the costs of paying certain types of taxes and fees paid in accordance with the procedure established by law be reflected in accounting?

In accordance with the procedure established by law, the costs of paying certain types of taxes and fees, in particular:

♦ corporate property tax;

♦ collection for improvement;

♦ fee for cleaning the territories of populated areas;

♦ fee for film and television filming;

♦ tax on transactions with securities;

♦ fee for the use of the names “Russia”, “Russian Federation” and words and phrases formed on their basis,

reflected in the accounts:

D 91 “Other income and expenses” subaccount 91-2 “Other expenses”,

To 68 “Calculations for taxes and fees.”

When paying:

D 68 “Calculations for taxes and fees”,

K 51 “Current accounts”.

12.1.11. What is the procedure for reflecting in accounting the expenses incurred by the enterprise at the expense of net profit?

The changes made to PBU 10/99 regulated the procedure for reflecting in accounting the expenses incurred by the enterprise at the expense of net profit: they are now subject to reflection as part of the non-operating expenses of the enterprise. This procedure fully complies with the principles of forming the final financial result of the enterprise, which is understood as net profit or net loss. In this case, the financial result, formed taking into account all current expenses of the enterprise, shows the real result of the enterprise’s activities in the reporting period, since it is formed not only on the basis of the organization’s income and expenses associated with the production process, but also taking into account the use of profits remaining at its disposal enterprises after taxation, for non-productive purposes. This approach makes it possible to provide the founders of the enterprise with more objective information about the real state of affairs in order to make the necessary management decisions.

12.1.12. What is the composition of extraordinary expenses and income and how are they reflected in accounting?

The changes made to PBU 9/99 and PBU 10/99 on September 18, 2006 regulated the procedure for reflecting in accounting income and expenses associated with emergency circumstances of economic activity; they are now subject to reflection as part of other expenses of the enterprise. This procedure fully complies with the principles of forming the final financial result of the enterprise, which is understood as net profit or net loss. In this case, the financial result, formed taking into account all current expenses of the enterprise, shows the real result of the enterprise’s activities in the reporting period, since it is formed not only on the basis of the organization’s income and expenses associated with the production process, but also taking into account the use of profits remaining at its disposal enterprises after taxation, for non-productive purposes. This approach makes it possible to provide the founders of the enterprise with more objective information about the real state of affairs in order to make the necessary management decisions.

Other income arising as a consequence of extraordinary circumstances of economic activity may include:

♦ the cost of material assets capitalized after the write-off of the enterprise’s property, unsuitable for restoration, damaged as a result of emergency circumstances;

♦ insurance compensation for losses incurred by the enterprise as a result of emergency circumstances.

The indicated income is taken into account directly as a credit to account 91-1 “Other income”.

D 10 “Materials”,

K 91-1 “Other income” - the materials remaining after the write-off of the enterprise’s property unsuitable for restoration have been capitalized;

D 76-1 “Calculations for property and personal insurance”,

K 91-1 “Other income” - reflects the amount of insurance compensation received by the enterprise.

Other expenses arising as consequences of emergency circumstances of economic activity are expenses arising as a result of a natural disaster, fire, accident, nationalization, etc.

Let's consider the composition of such expenses.

Uncompensated losses from natural disasters resulting in the loss of raw materials, materials, finished products and goods, including costs associated with the prevention or elimination of the consequences of natural disasters, less the cost of scrap metal, fuel and other material assets obtained. The enterprise should have documentary evidence of this type of event.

Confirmation and basis for entries in the accounts are:

♦ inventory act,

♦ invoices of contractors for work performed to eliminate the consequences of natural disasters,

♦ extracts from the settlement report on payment of expenses for liquidation of the consequences of natural disasters,

♦ other primary documents.

Based on these documents, accounting entries are made in the following accounts:

D 91-2 “Other expenses”,

K 10 “Materials”,

K 43 “Finished products”,

K 41 “Products”,

K 60 “Settlements with suppliers and contractors”,

K 70 “Settlements with personnel for wages”,

K 69 “Calculations for social insurance and security”,

K 51 “Current accounts”,

To other accounts.

Uncompensated losses as a result of fires, accidents and other emergency events caused by extreme situations.

The basis for entries in the accounts is an act confirming the losses incurred by the enterprise. In this case, accounting entries are made on the accounts:

D 91-2 “Other expenses”,

K 10 “Materials”,

K 43 “Finished products”,

K 41 “Products”,

K 70 “Settlements with personnel for wages”,

K 69 “Calculations for social insurance and security”,

K 51 “Current accounts”,

To other accounts.

Content

Postings

Display of NRP by on-farm reserves and funds:

1. D 80 Kt 84
   – a decrease in the volume of the authorized capital (AC) to the amount of its net assets is displayed.
2. D 84 Kt 80
   - the reverse process - an increase in the amount of funds of the management company.
3. D 82 Kt 84
   - reduction or full coverage of losses through deductions from the capital.
4. D 83 Kt 84
   – writing off the amount of loss using additional capital (AC).
5. D 75 Kt 84
   - repayment of financial losses of the organization through contributions collected from shareholders or owners of the enterprise.
6. D 84 Kt 83
   – use of research and development funds to increase the amount of additional capital.
7. D 84 Kt 84
   - movement of funds within an account - reserving finances for an upcoming purchase or organizing a fund for accumulation.

In analytical accounting, account 84 is formed in such a way that it will ensure the organization of data in accordance with the purposes of using its resources. Also, when displaying information about the use of retained earnings as a financial instrument for the acquisition of new tools and other means for the production development of the company, this data may be subject to differentiation

.

How to close

If an organization operates on the simplified tax system, it happens in the same way as with other enterprises - at the end of the reporting year. However, there are peculiarities when closing. At the beginning of the process, the subaccounts of account 90 are closed. After this, the company can begin to reset the account. 90, and 99.

In writing this is shown as follows

:

1. D 90, 91 Kt 99
   or
   D 99 Kt 90, 91
   - this means that income accounts have been closed.
2. D 99 Kt 84
   or
   D 84 Kt 99
   – written off net profit or incurred loss is taken into account.

At the end of the reporting year

Every month, the accountant generates the entries necessary to write off the results of the company’s activities. This is done like this:

1. D 90.9 Kt 99
   or
   D 99 Kt 90.9
   – data on income or losses from the main activities of the organization is generated.
2. D 99 Kt 84
   – the write-off of net profit (NP) is displayed; if in posting 84 it is formed by debit, then this means a write-off of the company’s losses.

At the end of the year, the balance sheet is reformed

. During this process, the corresponding accounts are reset. Postings are compiled depending on the intended purpose:

1. D 84 Kt 75
   - contains information on the accrual of funds for settlements generated at the end of the year.
2. D 84 Kt 80
   – deductions for increasing the volume of the capital.
3. D 84 Kt 82
   - drawing up a reserve capital base.
4. D 84.3 Kt 84.2
   – use of part of the NRP to cover losses accumulated during the reporting year.

Classic order of profit formation

To understand the efficiency of a business, one of the main criteria is the size of profit. And in general terms, profit is understood as the difference between the funds received from sales and the costs of the enterprise. However, in this case it is too early to talk about the formation of accounting profits.

In practice, the formation of profit indicators depends on the goal set by the accountant, economist, lawyer, personnel officer, manager/manager, etc. Therefore, before the formation of net profit, it is customary to include various costs in deductible expenses. As a result, the sources of profit generation show different profitability. Among them:

• gross profit - such a value if costs went only to cost items, i.e., without taking into account commercial and administrative expenses;
• profit from sales - takes into account the costs that are incurred during the sale of goods/works/services, i.e. already takes into account commercial and administrative expenses;
• profit before tax - sums up all revenue from core and financial activities, and then reduces it by direct costs of production, sales, and other costs;
• net profit is essentially the “dry residue” of business activity after deducting all expenses and paying taxes to the budget.

Profit is often confused with revenue. Please note that the company’s revenue is all receipts from sales of goods and work; revenue is shown in the first line of 2110.

Debit and credit

Account 84 corresponds to both debit and credit.

By debit:

1. - checking account. Its function is to display information about the movement of funds in a current account opened with a banking organization.
2. 52
   – accounts in foreign currency. Contains information about existing accounts in which funds in foreign equivalents are stored.
3. 55
   – accounts in special purpose banks. Needed to display data on accounts held by the company, the funds in which are in rubles or other currencies within the Russian Federation or other countries. The basis may be a checkbook, payment documentation, with the exception of bills of exchange, special and special accounts
4. 70
   - remuneration of employees. All payments between the employee and the company are displayed here.
5. 75
   – settlement with the founders. All payments made by the founders of the company are taken into account.
6. 79
   – calculations of intra-farm type.
7. 80
   – authorized capital (AC)
8. 82
   – contains information about the size and changes in the company’s reserve funds (RC).
9. 83
   – capital of additional type. Using it you can find out the volume of total additional capital (AC).
10. 84
    – profit that has not yet been distributed.
11. 99
    – profit and loss.

By loan

:

• – settlement actions in front of company employees that do not relate to wages;
• 75
  – settlements with founders;
• 79
  – on-farm calculations;
• 80
  – UK;
• 82
  – RK;
• 83
  – DK;
• 84
  – uncovered loss or retained earnings;
• 99
  – income received from the activities of the organization and losses arising in the process of its functioning.